1. Bond funds, also known as bond funds, refer to funds that invest in bonds. By pooling the funds of many investors, they make portfolio investments in bonds and seek relatively stable returns.
Second, bonds are creditor's rights and debt certificates issued by the government, financial institutions, industrial and commercial enterprises and other institutions to investors when they directly borrow money from the society to raise funds, and promise to pay interest at a certain interest rate and repay the principal according to agreed conditions.
Thirdly, according to the classification standard of China Securities Regulatory Commission for fund categories, more than 80% of the fund assets of bond funds are invested in bonds. Bond funds can also put a small amount of money into the stock market. In addition, investing in convertible bonds and issuing new shares are also important channels for bond funds to obtain income.
Fourthly, in China, bond funds mainly invest in government bonds, financial bonds and corporate bonds. Usually, bonds provide investors with a fixed return and repay the principal at maturity, and the risk is lower than that of stocks. Therefore, compared with stock funds, bond funds have the characteristics of stable income and low risk.
Fifth, the difference between money funds and bond funds mainly lies in the different investment objects. Money fund is an open-end fund, which invests in the money market, mainly investing in bonds, central bank bills, repurchase and other short-term wealth management products with high security; Bond funds are funds that invest in bonds, mainly treasury bonds, financial bonds and corporate bonds.
Sixth, the money fund's income is only higher than the bank's time deposit interest rate, but there is no interest tax, and it can be redeemed at any time, usually on the second day after applying for redemption. Therefore, the money fund is very suitable for units and individuals who pursue low risk, high liquidity and stable income. These two products have their own advantages.
As the king of cash management, money fund has high security, high liquidity and stable income, which is similar to "quasi-savings" and always shows the investment charm without obvious signs. According to the data of Galaxy Securities Fund Research Center, as of July 29th, 20 14, the average annual income of 49 A-level money funds in 20 14 was 1.8354%.