The return on investment of bond funds is uncertain. According to historical experience, the average return on investment of bond funds is generally 5-7%. Since last year, there has been a bull market in bond funds, and a considerable number of funds have earned more than 7%, even 10%. But this is not normal after all, and quite a few bond funds have suffered losses this year, and many people's funds are still at a loss. Not every investment will have good returns, so remind everyone that investment is risky and needs to be cautious!
Expanding knowledge: the concept, advantages and disadvantages of bond funds.
2. Bond funds refer to funds that mainly invest in fixed-income financial instruments such as treasury bonds and financial bonds, and are also called "fixed-income funds" because the income of the products they invest in is relatively stable. According to the proportion of investment in stocks, bond funds can be divided into pure bond funds and partial debt funds.
Third, the advantages of bond funds:
1. Low-risk bond funds can effectively reduce the risks that a single investor may face when directly investing in a bond by pooling investors' funds to make portfolio investments in different bonds.
2. Expert financial management With the increasing diversification of bond varieties, ordinary investors should not only carefully study the issuer, but also judge macroeconomic indicators such as interest rate trends, which is often beyond their ability, while investment bond funds can share the results of expert financial management.
3. If investors with strong liquidity invest in bonds with poor liquidity. Only when it is due can it be cashed, and indirectly investing in bonds through bond funds can obtain higher liquidity and can transfer or redeem the bond funds held at any time.
Fourth, the shortcomings 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.