Do bond funds earn money on holidays and weekends?
Bond funds are profitable on holidays and weekends, because the bond interest invested by bond funds is calculated according to 360 days. Although there is no transaction on the weekend, it will also generate interest income, so the income of bond funds is also calculated according to 360 days.
What is the income of bond funds?
The income of bond funds is mostly around 5%, and the high income can reach 10%, which represents the income in the fund well. Compared with bank deposits, the income is higher, but there are also many risks. The average annual yield of pure bond funds is slightly higher than that of 1 year bonds, and the average annual yield of bond funds is 5%- 10%.
The income of bond funds consists of two parts:
Capital gains and coupon gains. Bond funds mainly invest in bonds. During holidays, although the stock market will be closed, the interest on bonds is calculated every day. However, the net value of bond funds will not be updated on holidays, but on the evening of the first trading day after holidays.
The advantages of bond funds are stable income, low risk and relatively low management fees. Compared with stock funds, bond funds have low risks but low returns. Bond funds have income on holidays and weekends, but they will not be displayed in everyone's accounts on Saturday and Sunday, and the income on weekends is generally accounted for in working days.