Bond fund is a kind of fund form that specializes in investing in bonds, which means that more than 80% of the fund's funds are invested in bonds. As we all know, bond funds are investment products with stable income but less risk. Its biggest feature is portfolio investment, capital security and seeking stable returns.

Under what circumstances should bond funds be allocated?

1. Generally speaking, within 1 year, it is very suitable to use money funds for financial management, with good liquidity and high security, and the income is higher than the current interest of banks; Because A shares fluctuate greatly, we should be prepared not to make money for three years, so spare money for more than three years is invested in stock funds;

It would be a pity to put the idle money that has been useless for 1-3 years into the money fund, and it would be good to allocate the bond fund. Generally speaking, bond funds can achieve an annualized rate of return of about 5%;

2. There is another situation. At this time, the bull market, where the whole stock market has gone crazy, can no longer find undervalued index funds, but our investment will continue. At this time, you can sell overvalued index funds and buy bond funds.

3. Bond funds are an indispensable part of asset allocation. From the historical performance, the stock market and the bond market show a certain negative correlation, that is, one falls and one rises.

In fact, it is easy to understand that capital is profitable, and where it is profitable, capital will flow. The stock market is rising, everyone is optimistic about the stock market, and most of the funds flow to the stock market. However, when the stock market is not good, funds will flow to the bond market, at least there will be some gains in advance.

Therefore, we should make reasonable asset allocation in investment. You can't put all your funds into the stock market, you should take out some funds to buy bond funds.