First, it is highly mobile. In developed financial markets, investors generally invest short-term idle funds in short-term bond funds, which is much less risky than investing in stock funds and has higher yield than investing in money market funds. More importantly, because there is no time limit, fund managers can conduct trading activities continuously and frequently. Therefore, bond funds have high liquidity and can also provide necessary cash reserves when investors encounter unexpected events or more attractive investment opportunities.

Second, high security. No matter the bonds issued by the government or the bonds issued by the company, not only the interest should be paid according to the regulations, but also the principal should be returned. In addition, bond funds pay more attention to capital preservation. So generally speaking, investing in bond funds is more secure and less volatile than investing in stock funds. Generally speaking, the shorter the average term of a bond fund, the more stable the price and the lower the investment risk. However, due to the different credit ratings of investment fields and investment bonds, different types of bond funds have different risks. In addition, bond prices are extremely sensitive to the rise and fall of interest rates, so bond funds with higher returns are often more risky. For those investors who choose bond funds, they are also faced with the problem of how to weigh the risks and benefits.

The third is stable income. Generally speaking, low-risk investment tools tend to have lower returns. As mentioned above, although the return on investment of bond funds is lower than that of equity funds, the return on investment is very stable. In a mature securities market, it is almost impossible for one bond fund to gain 15% annual income while the other loses 10%. This can also be seen from the recent interim reports of 33 funds managed by domestic 10 fund management companies. In the first half of this year, 12 companies lost money and 2 1 company made profits. However, in the process of fund companies participating in bond investment, only three companies lose money and the other 30 companies make profits, which is beneficial to investors who pursue low risk, especially insurance companies.