The full name of bond fund is "bond fund", which refers to a fund that specializes in investing in bonds. By concentrating the funds of many investors, we can make portfolio investment in bonds and seek relatively stable returns.

Is the bond fund risky?

Bond funds are not risky, but they are still slightly bigger than money funds. According to the risk level, the risk of bond funds belongs to medium and low risk. Of course, high risk often corresponds to high income, in other words, the income of bond funds is generally higher than that of money funds.

How do bond funds make money?

There are four sources of making money: interest income+transaction spread+bond repurchase transaction+stock investment income.

1. Interest income: interest paid by the borrower.

2. Trading spread: After the listing, the bond price fluctuates, and there is a trading spread if it is sold high and sucked low.

3, bond repurchase transactions: a simple understanding is to add leverage. For example, when the market capital interest rate (for example, 2%) is lower than the bond coupon rate (for example, 3%), you can buy new bonds by mortgage bonds and get the extra income of 1%.

4. Stock investment income: mainly for hybrid bond funds. Tier 1 debt funds can purchase stocks and participate in stock trading through fixed increase, innovation and debt-to-equity swap. Secondary debt funds are relatively simple and can be bought directly from the secondary market like ordinary retail investors.

The above are some contents of bond funds, so you can pay attention to them.