Both funds and bonds belong to the investment category with low threshold, and the professional requirements for investors are not high, so there are not a few ordinary individual investors who buy funds and bonds. There are also many investors who will compare the two. Is there a difference between funds and bonds?

1, product attribute

Fund is an indirect investment tool, which means that investors entrust funds to fund managers to operate in order to obtain the expected return on investment. Normal products are generally issued by fund companies, and the relationship between investors and fund managers belongs to trust relationship.

Bonds are direct investment tools, and the funds raised are mainly invested in industry. Bond is a kind of bond certificate between investors and bond issuers. After buying bonds, investors actually become creditors of bond issuers.

2. Expected income of products

Funds are products with floating expected returns. Even the money fund with the most stable expected return fluctuates the expected return every day, and does not promise to protect the capital and the minimum expected return.

Different types of funds have different expected returns. Common ones are that the expected return of general money funds is around 2.5%, bond funds can reach more than 4%, and stock funds can reach more than 15%.

Bonds are products with fixed expected returns. When the bonds are issued, the coupon rate and the investment period have been agreed. After the investor holds it, the issuer needs to agree on the interest rate to repay the principal and interest.

The coupon rate of a bond is related to its grade and maturity. Take the national debt as an example, the three-year interest rate is around 4%, and the five-year interest rate is around 4.27%.

3. Product risk

From the perspective of product risk, it is obvious that the risk of funds is generally higher than that of bonds. Of course, funds are at risk of loss, and bonds are at risk of default.