Bond funds are funds that mainly invest in fixed-income bonds such as government bonds, financial bonds, short-term financing bonds and corporate bonds. It can be understood that the money invested in this fund is mainly used to buy bonds. Because the bond yield is relatively stable, the debt base is also called "fixed income fund". Debt-based investment has low risk, stable income and low management fee. What are the advantages and disadvantages of bond funds?

Advantages of bond funds

1. Ordinary investors can easily participate in investment in products such as inter-bank bonds, corporate bonds and convertible bonds. These products have various inconvenient restrictions on small funds, and buying bond funds can break through this restriction.

2. When the stock market is depressed, the income of bond funds is still very stable and is not affected by market fluctuations. Because the product income invested by bond funds is very stable, the corresponding fund income is also very stable. Of course, this also determines that its income is subject to the interest rate of bonds and will not be too high. The annual interest rate of corporate bonds is around 4.5%, and the annual rate of return can be guaranteed to be between 3.3% and 3.5% after deducting the operating expenses of the fund.

Disadvantages of bond funds

1, only in the case of long-term holding, 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.