Fixed income fund is a kind of fund that invests in fixed income products. Such funds usually distribute the funds in their portfolios to borrowers to obtain stable interest income. Fixed-income funds mainly invest in government and corporate bonds, including government bonds, local government bonds and corporate bonds. These bonds are relatively low-risk investment products. Compared with equity funds and hybrid funds, fixed-income funds are relatively less risky.

In addition to relatively small risks, fixed-income funds have other advantages. First of all, the income of such funds is relatively stable and will not fluctuate greatly due to market fluctuations; Secondly, the fixed-income fund has a short investment cycle and strong liquidity, and investors can redeem it at any time when they need funds. In addition, the income of the fixed-income fund can also enjoy preferential tax policies, because the interest income earned by the fund manager has been deducted from the interest income tax.

Although the risk of fixed-income funds is relatively small, they should also allocate assets appropriately. For older investors or investors who want to invest in a conservative way, fixed income funds are an ideal investment choice. However, for those investors who pursue high returns and are willing to take greater risks, fixed-income funds are not the best investment choice. Therefore, when investors choose fixed-income funds, they need to carefully analyze their investment needs and risk tolerance, and carry out adequate risk management and asset diversification.