Funds that mainly invest in fixed-income financial instruments such as treasury bonds and financial bonds are called bond funds. Because the products they invest in have relatively stable returns, they are also called "fixed-income funds". According to the proportion of investment in stocks, bond funds can be divided into pure bond funds and partial debt funds.

What are the advantages and disadvantages of bond funds?

superiority

1. Low-risk bond funds can effectively reduce the risks that a single investor may face when directly investing in a bond by pooling investors' funds to make portfolio investments in different bonds.

2. Expert financial management With the increasing diversification of bond varieties, ordinary investors should not only carefully study the issuer, but also judge macroeconomic indicators such as interest rate trends, which is often beyond their ability, while investment bond funds can share the results of expert financial management.

3. If investors with strong liquidity invest in bonds with poor liquidity. Only when it is due can it be cashed, and indirectly investing in bonds through bond funds can obtain higher liquidity and can transfer or redeem the bond funds held at any time.

disadvantaged

1. Only if you hold it for a long time can you get a relatively satisfactory return.

2. When the stock market skyrocketed, the income remained stable at the average level, which was lower than that of equity funds. When the bond market fluctuates, there is even the risk of loss.