Bond fund is one type of fund. As you can tell from the name, it is a fund that mainly invests in bonds. Many investors are curious about the annualized rate of return of bond funds. So what is the approximate annualized rate of return of bond funds? Let’s take a look.

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What is the approximate annualized rate of return of bond funds?

There are many types of bond funds, and the annualized yields of different types of funds are different. Bond funds can be divided into pure debt funds, partial debt funds, regular open debt funds, and convertible bond funds.

The annualized returns of different types are as follows: 1. The average annualized return of pure debt funds is between ±3~4%.

2. The average annualized return rate of debt-focused hybrid funds is between ±5 and 6%.

3. The average annualized return rate of regular open debt funds is between ±3~4%.

4. The average annualized rate of return of convertible bond funds is around ±20% to 25%.

Of course, the higher the return, the higher the risk. Pure debt funds have the lowest return and the lowest risk, while convertible bond funds have the highest return, so the risk is naturally the highest.

Generally speaking, the income of bond funds is higher than that of currency funds, and lower than that of stock funds and hybrid funds. When choosing, you should choose according to your own risk tolerance. The above is the whole content. I hope it will be helpful to you.

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