It is not recommended to buy, the income is low. Normal without loss, bonds are relatively stable. Bond fund refers to a fund that specializes in investing in bonds. By pooling the funds of many investors, it makes portfolio investment in bonds and seeks relatively stable returns. According to the classification standard of China Securities Regulatory Commission, bond funds refer to funds with more than 80% of fund assets invested in bonds. Because bond funds invest in bonds, the risks of bonds may include interest rate risk and credit risk, so bond funds are also risky.

The meaning of bonds:

Bond/debenture is a kind of financial contract, which is a debt certificate issued to investors when the government, financial institutions and industrial and commercial enterprises directly borrow money from the society and promise to pay interest at a certain interest rate and repay the principal according to the agreed terms. The essence of a bond is a certificate of debt, which has legal effect. There is a creditor-debtor relationship between bond buyers or investors and issuers. Bond issuers are debtors and investors (bond buyers) are creditors.

Bonds are securities issued by debtors such as governments, enterprises and banks in accordance with legal procedures in order to raise funds and promise creditors to repay the principal and interest on a specified date.

Definition of stock fund:

Equity funds, also known as equity funds, refer to funds that invest in the stock market. There are many kinds of securities funds. In addition to stock funds, there are also bond funds, stock-bond mixed funds and money market funds in China.

Investment strategies include value, growth and balance.

1, value type

Among the three types of funds, value-based funds have the least risk, but the returns are also low, which is suitable for investors who want to share the returns of equity funds, but are more inclined to take smaller risks. Generally speaking, the investment strategy adopted by value funds is to buy low and sell high, focusing on whether the stock price is reasonable. Therefore, the first step of value-based investment is to find low-priced stocks.

2. Growth

Among the three types of funds, growth funds is suitable for investors who are willing to take greater risks. Because this kind of fund has the highest risk, but there is relatively large room for growth to earn high returns.

3. Balanced type

Balanced fund is a fund between value and growth. In terms of investment strategy, some of them invest in low-valued stocks and some in listed companies in growth industries.