What is it? With bond funds, you don’t have to worry about principal and can steadily outperform “inflation.”

Of course, bond funds are not just bought randomly. If you want to have an average annualized rate of return of 6%, you must master the basic knowledge of bond funds.

1. Pure debt funds: As the name suggests, they basically invest in bonds

2. Bond funds: More than 80% of the funds are used to invest in bonds

3. Partial debt fund: More than 50% but less than 80% of the funds invested in bonds

4. Convertible bond fund: Bonds are divided into treasury bonds, government bonds and corporate bonds. This kind of fund is dedicated to investing in companies Convertible bonds.

Among them, pure debt funds are the most stable bond funds, followed by bond funds. Partial debt funds and convertible bond funds will be affected by the stock market to a certain extent and fluctuate greatly. Not recommended for beginners to buy.

1. Rate of return:

Selected based on historical annualized rate of return, of course the higher the better

2. Fund size:

Whether it is too big or small, it is easy for fund managers to operate. It is recommended to buy more than 1 billion

3. Rate:

Of course, the lower the better

4. Fund manager:

The fund manager is the soul of a fund. Whether the fund makes money or not sometimes depends entirely on the fund manager’s preferences and habits. So when you select a fund based on its rate of return, be sure to check whether the fund manager of this fund changes frequently. How many years has the current fund manager been in office?

5. Fund rating:

At least 3 stars, 4 or 5 stars would be even better

Where can I check these data? The old rules are still "Tiantian Fund Network". Be patient, the data inside is quite complete!

I said before that it is best to buy money funds for funds that need to be withdrawn at any time, because money funds have good liquidity. What about bond funds?

Bonds generally have a certain time limit. Bonds purchased in different time periods have different interest rates. Therefore, if you want to obtain higher returns, it is best to purchase it with funds that will not be used in the short term. It is advisable to leave it idle for at least 1 to 3 years.

Bond funds generally use the "10-year Treasury Bond Yield" as a reference indicator.

When market interest rates are high, more people will buy them, and bond prices will fall. Buy at this time. Conversely, sell when market interest rates are low.

Now, do you know how to select and trade bond funds?