Bond funds are funds that invest in various bonds, including government bonds, corporate bonds and convertible bonds. So do bond funds only invest in bonds? Is it worthwhile to buy a bond fund? Bian Xiao also prepared relevant contents for everyone, hoping to be helpful to everyone.

Do bond funds only invest in bonds?

It is true that the bond fund's investment portfolio is mainly bonds, but it is not entirely invested in bonds. According to the investment strategy and objectives of the fund, it can also invest in other financial instruments, such as money market instruments and stocks. Diversified investment can help bond funds reduce risks, improve returns and get better returns in different market environments. For example, some bond funds may invest part of their funds in liquid assets, such as short-term deposits, to meet the redemption needs when necessary. In addition, some bond funds may also buy some stocks to improve the yield of their portfolios. With the application of these investment strategies, bond funds can not only invest in bonds, but also balance risks and benefits through diversified investment portfolios.

Is it worthwhile to buy a bond fund?

There is no absolute answer to whether it is worthwhile to buy a bond fund. Investors can analyze from the following aspects:

1. Consider the benefits and risks: investing in bond funds may have higher benefits than simply buying bonds, and the impact of specific bond risks can be reduced by investing in various assets. However, it should be noted that the income of bond funds is fluctuating and may be affected by factors such as changes in market interest rates and bond defaults.

2. Consider the investment objectives and duration: If investors want to obtain stable returns and are unwilling to take too much risks, bond funds may be a suitable choice. However, if investors have high risk tolerance and want to seek excess returns, they may need to consider other wealth management products such as stock funds.

3. Consider transaction costs: bond funds usually charge subscription fees and redemption fees. Investors need to carefully understand the fund's fee structure and give priority to bond funds with lower rates to avoid the impact of high transaction costs on investment income.

Disadvantages of bond funds:

Because bonds have the characteristics of long-term average, it takes investors a long time to feel the real investment income, and the investment time may often take 3-5 years or even longer, which is very difficult for people with limited investment or short-term concerns. Bond funds have advantages when the equity asset market is poor, but they are very conservative when the stock market, real estate market and other markets are good.

Moreover, bond funds are not foolproof, and there may be some risks:

First of all, it depends on what the underlying assets we invest in. If you are worried about risks, you can choose the corresponding underlying assets to be more solid. For example, we bought the government bond index Fund, taking the 10-year Treasury ETF as an example. It invests in the ten-year debt issued by the central government and relies on the government's credit endorsement. Therefore, the long-term risk of such bond funds is relatively small. Excluding the fluctuation of bond prices caused by interest rate fluctuations in a certain period of time, a stable return on investment can be basically obtained in the long run. Correspondingly, there are local government bonds. As long as the selected bond fund invests in such assets, it is still relatively reliable.

Of course, if you don't like this kind of bond funds, you can try to pay attention to some active bond funds, such as the fund investing in corporate bonds issued by some large companies, or some investing in assets other than bonds with a small number of positions (for example, the fund may use 10% funds to buy stocks and 90% bonds). However, there are risks including the credit default of these enterprises and the falling investment share price. However, there is no need to exclude such bond funds because of risks. After all, the probability of default of such large enterprises is not great, and the fund itself can help spread the risks of various enterprises and balance the fluctuation of stock prices because of the diversification of investment targets.

Therefore, it is suggested that everyone should pay attention to boldly learning all kinds of bond funds under the premise of combining their own risk adaptability. Why not?

It is worthwhile to buy a bond fund.

Friends who buy gold and choose debt base smile more comfortably. For example, if they want to be a little rich woman, they will buy a debt base of 10 thousand, which will always be red and more secure.

Let's just say that this bond fund really smells good. Recently, big A has repeatedly jumped, and few people make money.

This debt base, don't look, don't worry, it's almost 200 yuan at once. It's enough for our family of four to go out for a meal. Bond funds are as stable as Mount Tai, which is the reason for making money. hahaha. No, no, no. I don't eat out. I will reinvest the dividends, and the money I earn will continue to earn and compound interest. Qian Duoduo, be a little rich woman.

The selection criteria of partial debt funds: pursuing positive returns during the holding period; Strictly control the maximum withdrawal of products; Strive to achieve the goal of absolute return strategy.

So it's not surprising to see my gold debt base continue to make money for me.

To tell the truth, don't underestimate the income of bond funds. One year can't change much, but don't underestimate the power of five years. After all, water droplets will wear away.

Although the bond fund fluctuates little and the income does not look high, under the action of time, the income of the bond fund is also very good. How do you know that the tortoise will lose the tortoise-rabbit race?

To know that there is no certainty in investment, friends who can't accept losses and are afraid of fluctuations can start with bond funds.

It is worthwhile to buy a bond fund.

At present, continue to calm down, make up positions slowly, fluctuate occasionally, and don't make big moves. Don't put too much pressure on yourself when investing, just be casual. Otherwise, if you get sick of 108 investment, you can't sleep, you are afraid of losses, and you can't stand fluctuations, so you will lose more than you gain.

Now that I'm working, is it better to reduce the investment in stocks or is the fund more suitable for me? You make a lot of money, but you don't lose so much when you don't make money.

The benefits of drying bond funds, steady happiness, need not sigh. See how he has an advantage in this trend. Whether it is a black cat or a white cat. It is a good cat that makes money. Everyone's investment style is different and needs a balanced allocation. Only when low-risk bond funds are properly allocated can Qian Shengqian's fruits be handled calmly.