Pure bond funds refer to funds with fixed-income financial instruments such as government bonds and financial bonds as their main investment targets. Pure debt funds do not invest in stocks. Generally speaking, bond funds do not charge subscription or subscription fees, and the redemption rate is also low. Pure bond funds have a certain period of time, and the principal and interest will be returned at maturity, and the interest is higher than that of bank deposits. Therefore, the risk of buying a pure debt fund is not great, and its biggest risk is that it cannot keep up with the pace of inflation.

Advantages of pure bond funds

1. low risk: bond funds can effectively reduce the risks that a single investor may face when investing in a bond directly by pooling investors' funds to make portfolio investments in different bonds.

2. Expert financial management: With the increasing diversification of bond varieties, ordinary investors should not only carefully study the issuers, but also judge macroeconomic indicators such as interest rate trends, which is often beyond their ability, while investment bond funds can share the results of expert financial management.

3. Strong liquidity: If investors invest in bonds with poor liquidity. Only when it is due can it be cashed, and indirectly investing in bonds through bond funds can obtain higher liquidity and can transfer or redeem the bond funds held at any time.

Disadvantages of pure bond funds

1, only in the case of long-term holding, can you get a relatively satisfactory return.

2. When the stock market skyrocketed, the income remained stable at the average level, which was lower than that of equity funds. When the bond market fluctuates, there is even the risk of loss.

Compared with investors directly investing in bonds, buying bond funds can enjoy many special treatments and get higher returns. For example, it can indirectly enter the bond issuance market and gain more investment opportunities; Can enter the interbank market and hold financial bonds with higher interest rates; You can enter the repurchase market and enjoy the treatment of super institutional investors who purchase new shares by financing and the interest income of risk-free reverse repurchase.