Bond funds are fund products that invest in the bond market. Its main investment targets are various bonds, such as government bonds, corporate bonds and financial bonds. Bond funds earn interest income by buying bonds, and allocate investors' funds in a variety of bonds reasonably to achieve risk diversification and maximum income.

The characteristic of bond funds is 1. Low risk: Bond funds invest in the bond market, with less risk than the stock market. As a fixed income tool, the risk of bond fund mainly comes from the risk of bond default and the risk of market interest rate fluctuation.

2. Stable income: Bond funds are mainly based on fixed income, and the income is relatively stable compared with equity funds. Bond interest income is the main income source of bond funds, and bond funds usually distribute the income to investors regularly.

3. Long investment period: Bond funds usually invest in bonds with long investment period, which also determines that their investment period is relatively long. When investors buy bond funds, they need to consider their investment period to avoid early redemption or failure to realize them in time.

Investment strategy of bond funds 1. Bond selection: The investment manager of the bond fund will make a comprehensive evaluation according to the credit rating, issuer, maturity date and other indicators of the bond, and select the bond with lower default risk. At the same time, the investment manager will adjust according to the change of market interest rate to obtain higher returns.

2. Interest rate forecast: The investment strategy of bond funds also includes the forecast of market interest rate. An increase in interest rates will lead to a decrease in bond prices, and a decrease in interest rates will lead to an increase in bond prices. According to the judgment of market interest rate, fund managers will adjust the duration of bonds and revise the duration to cope with the risks brought by interest rate changes.

3. Asset allocation: Bond foundations rationally allocate the proportion of different types of bonds according to market conditions and investment objectives. For example, when the economic boom is high, the investment ratio of corporate bonds can be increased; When the downside risks of the economy increase, the investment proportion of low-risk bonds such as national debt can be increased.

The risk of bond funds is 1. Interest rate risk: the investment income of bond funds is closely related to the market interest rate. When the market interest rate rises, the bond price falls, and the net value of bond funds will also be affected. Investors need to pay attention to the change of market interest rate when buying bond funds.

2. Default risk: Bond funds invest in the bond market, and the default risk of bonds is one of the main risks of bond funds. Investors need to fully evaluate the bonds invested by the fund and choose bonds with low default risk.

3. Liquidity risk: Bond funds usually invest in long-term bonds, and the liquidity of long-term bonds is relatively low. If bond funds need to be redeemed in advance in a specific period, they may face the risk of not being realized in time.

Reliability of bond funds As a low-risk investment tool, bond funds are relatively reliable. The income of bond funds mainly comes from the interest of fixed-income bonds, and the investment manager will make reasonable allocation and adjustment according to the market situation to ensure the stable income of the fund. Investors still need to pay attention to the investment strategy, bond selection and risk control ability of the fund when buying bond funds to ensure their own investment safety.