Current location - Trademark Inquiry Complete Network - Tian Tian Fund - What is a bond fund and what are its characteristics?
What is a bond fund and what are its characteristics?
Watchdog wealth answers for you.

Bond funds, also known as bond funds, refer to funds that specialize in investing in bonds. By concentrating the funds of many investors, we can make portfolio investment in bonds and seek relatively stable returns.

Bond fund is a fund that invests most of its funds in fixed-income financial products such as national debt. This kind of fund has its own advantages, which has attracted many people's attention. In today's bad economic situation, this product has achieved good development.

Three characteristics of bond funds

Feature 1: Low risk.

The main investment targets of bond funds are fixed-income wealth management products. It invests 80% of its capital in fixed-income products. Even if the remaining 20% funds may lose money, they can also make up for it with another part of the investment, so the risk of bond funds is very low.

Feature 2: Stable income

Investing in this kind of products is sure to get a stable income, and bond funds are suitable for cautious investors. Choosing such a product can wait for income.

Bond funds pay attention to the current income, so there is not much room for appreciation. Compared with stocks, the value it can create is limited, so it is not suitable for those investors who pursue high returns, but only for those investors who pay attention to stable returns.

Feature 3: low program cost.

It is not difficult to manage bond funds well. Comparatively speaking, the management of stock products does not require investors to pay a lot of energy, so the procedure cost will be much lower. Choosing such a product does not need to bear a lot of transaction costs, and the burden on investors will be reduced a lot.