Bond funds, also known as "fixed income funds", mainly invest in financial instruments such as treasury bonds and financial bonds with fixed expected annualized expected returns, and the expected annualized expected returns of the invested products are relatively stable. As a low-risk investment product, bond fund still has its necessity in asset allocation portfolio.

Bond funds have the characteristics of low risk, strong liquidity, low cost and stable expected annualized expected returns. So how should I choose if I want to buy it?

Choosing a bond fund must first choose the right time. The rise and fall of bond prices is inversely proportional to the expected annualized interest rate. When the annualized interest rate is expected to rise, the bond price will decrease. Investors should look at the ups and downs of the bond market before investing.

Investors' risk tolerance is also an important factor in choosing bond funds. Investors who have low risk tolerance and want to get higher expected annualized expected returns can choose bond funds. If the risk tolerance is very low, such investors can consider pure debt funds.

Investors also need to choose the rate model according to their own situation. Many domestic bond funds offer a variety of interest rate models to choose from. In addition to the expected annualized interest rate, it is the credit quality that affects the expected annualized expected return of bond funds. The credit quality of bond funds depends on the credit rating of bonds invested by the funds. Generally speaking, investors can understand the credit quality of bond funds by limiting the credit rating of bonds invested in the fund prospectus and describing the credit rating of bonds held in the fund portfolio report.

The expected annualized expected return of bond funds is relatively low, and only long-term holding can obtain relatively satisfactory expected annualized expected return. In addition, when the stock market rises sharply, the expected annualized expected return is still stable at the average level, but compared with equity funds, the expected annualized expected return is relatively low, and there is even the risk of loss when the bond market fluctuates. So pay attention to risks when buying.