Bond funds can be divided into government bond funds, corporate bond funds, convertible bond funds and junk bond funds according to the bonds invested. At present, China's bond funds mainly take treasury bonds, financial bonds, corporate bonds and convertible corporate bonds as specific investment targets.
The investment objectives of different bond funds are not exactly the same. Some funds try to bring regular interest income to investors while keeping the principal relatively stable. Some funds try to take advantage of market changes to maximize the total return of their portfolios composed of current income and capital gains; Other funds just try to copy the market index of a fixed-income securities market.
According to different investors, China's current bond funds include pure bond funds and non-pure bond funds that can participate in the subscription of new shares in the primary market. Usually, the proportion of stock assets invested does not exceed 20% of the fund's net asset value, such as CITIC Li Shuang bonds, which generally have higher returns.