The popularity of money funds has caused many investors to contact and participate in fund investment, but the expected return of money funds has declined as a whole, so many investors have begun to pay attention to bond funds with higher expected returns. So how do you buy a bond fund? Let's take a look together.

1. Choose according to risk preference.

The so-called bond funds, as the name implies, mainly invest in bonds, and some also invest in stocks. However, according to the different proportion of bond and stock investment, bond funds are also divided into many categories. Investors can generally judge according to the name of the bond fund.

A fund with the words "pure debt" is a pure debt fund, which means that the assets of the fund are not invested in any stocks, and the expected return is relatively stable and the risk is low.

Funds with the word "bond" mean that some assets of such bond funds are invested in stocks, but the proportion of stock positions generally does not exceed 20%, so the investment risk is higher than that of pure debt funds, and the expected expected rate of return is relatively higher.

A fund with the words "convertible bonds" means that the investment target is mainly convertible bonds. Convertible bonds are both debt and stock, so the risk of convertible bonds funds is relatively high, generally belonging to medium and high risk funds.

In addition, the name of the fund will also include words such as long-term debt, short-term debt and ultra-short debt. On the whole, investors with low risk appetite can choose pure debt, short debt or ultra-short debt funds.

2. Choose according to the fund transaction rate.

The difference in transaction rates between different funds is mainly reflected in subscription fees, redemption fees and sales service fees. Generally, funds with the letter A at the end of their names indicate that they need to charge subscription fees and redemption fees, while funds with the letter C at the end of their names indicate that they need to charge sales service fees and redemption fees. It is more cost-effective to hold a class C foundation in the short term, and it is more cost-effective to hold a class A foundation in the long term.

The above information about how to buy bond funds is helpful to everyone. Warm reminder, financial management is risky and investment needs to be cautious.