Today, Bian Xiao saw a lot of discussions on whether dividends of bond funds are considered as income on the Internet. Bian Xiao summed up relevant knowledge by searching information on the Internet, hoping to help you.

What is the dividend of the bond fund? Bond fund is an investment tool issued by fund companies, banks and other institutions, and gains income by investing in bonds. Bond fund dividend refers to a way for fund companies to distribute fund income to investors according to a certain proportion. Usually the frequency of dividends is once a year or once a quarter.

? Dividends from bond funds are a kind of income, but they are not the ultimate income of investors. In fact, the investment income of bond funds includes dividends and fund unit net value growth. Dividends are distributed based on the income obtained by fund companies, and the increase of fund share net value is based on the change of bond value in fund portfolio.

In the bond market, bond prices and interest rates are opposite, that is, when interest rates rise, bond prices fall, and when interest rates fall, bond prices rise. The unit net value of bond funds will also fluctuate with the change of market interest rate. If the market interest rate drops, the bond price held by the fund will rise, and the net value of the fund unit will also rise. In this case, investors can gain income by selling fund shares. If the market interest rate rises, the bond price held by the fund will fall, and the net value of the fund unit will also fall. In this case, the value of investors' fund shares will decline, but if investors hold fund shares and wait for the market to pick up, they may get higher returns.

How to choose the right bond fund? Choosing the right bond fund needs to consider the following factors:

1. Reputation of fund companies: Choosing a fund company with good reputation can reduce investment risks.

2. Fund size: The larger the fund size, it usually means that the fund company has stronger management ability and wider resources.

3. Fund expenses: including management expenses and sales expenses. The lower the cost, the higher the income.

4. Portfolio: Investors need to know the portfolio of the fund, including the types of bonds held and the risk level.

5. Rate of return: Investors need to know the historical rate of return of the fund and its comparative rate of return with similar funds.

Bond fund is a relatively stable investment tool, which is suitable for investors who pursue stable returns and reduce risks. When investors choose bond funds, they need to comprehensively consider the reputation, scale and cost of the fund company, and pay attention to the risk level and historical rate of return of the fund portfolio.