Bond is a valuable security. Because the interest of bonds is usually determined in advance, bonds are a kind of fixed-interest securities. In countries and regions with developed financial markets, bonds can be listed and circulated. In China, the typical government bonds are short-term treasury bills.

Then, bond funds, also known as bond funds, refer to funds that specialize in investing in bonds. By pooling the funds of many investors, it makes portfolio investment in bonds and seeks relatively stable returns.

Bonds are creditor's rights and debt certificates issued to investors when the government, financial institutions, industrial and commercial enterprises and other institutions directly borrow money from the society to raise funds, and promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions. 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. Bond funds can also put a small amount of money into the stock market. In addition, investing in convertible bonds and issuing new shares are also important channels for bond funds to obtain income.

In terms of risk, in China, bond funds mainly invest in government bonds, financial bonds and corporate bonds. Usually, bonds provide investors with fixed income, repay the principal at maturity, and the risk is lower than that of stocks. Therefore, compared with stock funds, bond funds have the characteristics of stable income and low risk, which are suitable for novice investment;

Bond fund ranking part

Next, let's look at the advantages and disadvantages of bond funds; Enter the warehouse according to your own preferences, don't be blind and judge by yourself;

Ordinary investors can easily participate in the investment of inter-bank bonds, corporate bonds, convertible bonds and other products. These products have various inconvenient restrictions on small funds, and buying bond funds can break through this restriction.

(2) When the stock market is in a downturn, the income of bond funds is still very stable and is not affected by market fluctuations. Because the product income invested by bond funds is very stable, the corresponding fund income is also very stable. Of course, this also determines that its income is subject to the interest rate of bonds and will not be too high. The annual interest rate of corporate bonds is around 4.5%, and the annual rate of return can be guaranteed to be between 3.3% and 3.5% after deducting the operating expenses of the fund.

disadvantaged

(1) Only when it is held for a long time can it obtain a relatively satisfactory return.

(2) When the stock market skyrocketed, the income remained stable at the average level, which was lower than that of equity funds. When the bond market fluctuates, there is even the risk of loss.