Bond funds refer to fund types that raise funds mainly to invest in bonds, including treasury bonds, corporate bonds, local bonds, convertible bonds, etc.

Of course, there may also be some bond funds that invest in higher-risk products such as stocks, but the investment proportion is not high.

Is it better for a bond fund to have a high net worth or a low net worth? It is not absolute.

The rise and fall of the fund's net value mainly depends on the overall market environment and the management ability of the product manager.

Fixed-income products such as debt funds are mainly invested in fixed-income assets such as bonds, so they will have stable coupon income. No matter how the market fluctuates, their net worth trends will show a steady upward trend amid fluctuations.

Simply understand, no matter whether the current net value of a bond fund is high or low when investors buy it, from a long-term perspective, it will rise steadily.

Investors can use the net value of a bond fund as a reference indicator, but it is by no means an indicator of whether a bond fund is good or bad.

How to choose the best bond fund? 1. Look at the investment direction. If investors want to obtain relatively stable expected returns and the net value is not affected by price fluctuations of equity assets such as stocks, they can choose pure bond funds.

If you are willing to take greater risks and strive to obtain more returns, you can choose primary debt funds, secondary debt funds, and convertible bond funds.

2. Look at the investment strategy. In addition to the expected returns brought by interest, spreads, equity investments, etc., bond funds usually strive to further increase returns through duration allocation, leverage management, etc.

Paying attention to the duration allocation and leverage strategy use of bond funds can allow investors to further understand the risks of the fund.

3. Check the historical performance. For example, investors need to pay attention to whether the historical performance of the fund product is stable, what the maximum drawdown and volatility are.

The above is some content about bond funds, I hope it can help everyone.