How did bond funds come into being?
1. Bond funds, also known as bond funds, refer to funds that invest in bonds. By pooling the funds of many investors, they make portfolio investments in bonds and seek stable expected returns.
2. More than 80% of investors' funds raised by fund managers are used to invest in bond products. These bond products, including bond funds, mainly invest in government bonds, financial bonds and corporate bonds.
3. Fund managers allocate funds and portfolios and adjust positions according to market changes.
4. When investing in bonds gets expected returns, bond funds will also get corresponding expected returns.
How do bond funds make money?
1, bonds provide investors with fixed income and repay the principal at maturity, and the risk is lower than that of stocks. Therefore, compared with stock funds, bond funds have the characteristics of stable expected income and low risk.
2. Investors will invest their own funds in the corresponding funds, and fund managers will raise funds to invest in the bond market in the name of institutions according to their own bond portfolios and suitable positions, and obtain expected returns, which will be expressed in the form of net fund value.
3. The net fund value refers to the net value after deducting custody fees and management fees. According to the change of fund net value, determine the profit and loss of investors, and give investors the expected income of capital investment ratio.