Bond fund refers to a fund that specializes in investing in bonds. By concentrating the funds of many investors, it makes portfolio investment in bonds and seeks relatively stable expected annualized expected returns. According to the classification standard of China Securities Regulatory Commission, bond funds refer to funds with more than 80% of fund assets invested in bonds. Compared with other fund types, bond funds have their own advantages and disadvantages, and investors should choose whether to invest in bond funds according to their own economic situation.

Investors investing in bond funds mainly have the following advantages:

(1) Low risk. Bond funds can effectively reduce the risks that a single investor may face by pooling investors' funds to invest in different bonds.

(2) financial management. With the increasing diversification of bond types, ordinary investors should not only carefully study the issuer, but also judge the expected annualized interest rate trend and other macroeconomic indicators, which is often beyond their ability, while investment bond funds can share the fruits of their operation.

(3) Strong liquidity. If investors invest in illiquid bonds. 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.

Disadvantages of bond funds

① Only by holding it for a long time can we obtain a relatively satisfactory expected annualized expected return.

(2) When the stock market skyrockets, the expected annualized expected return is still stable at the average level, which is lower than that of equity funds, and there is even the risk of loss when the bond market fluctuates.