I. Definition of bond fund:

Bond funds, also known as bond funds, refer to funds that invest in bonds.

Second, the bond fund investment object:

Bond funds mainly invest in government bonds, financial bonds and corporate bonds.

Three. Advantages and disadvantages of bond funds compared with other types of funds;

1, advantages:

The establishment of bond funds provides a channel for ordinary investors to participate in investment in products such as national debt and corporate bonds. Since these products are not issued for small funds, buying bond funds breaks through this restriction.

2. Disadvantages:

The shortcomings of bond funds are also obvious. Compared with the money fund, it needs a longer holding period to get the corresponding income.

Factors affecting the risk of bond funds and buying opportunities;

Risk:

1, interest rate risk:

The market interest rate has a direct impact on the rise and fall of bond funds, and the rise and fall of bond prices is inversely proportional to the rise and fall of interest rates.

2. Credit risk:

Credit reinsurance mainly aims at the risk of low-rated credit bonds purchased by bond funds. Due to the high probability of default of low-rated credit bonds, such as financial crisis and corporate bonds on the verge of bankruptcy.

Time of purchase:

Since the beginning of this year, China's real economy has been under great downward pressure, and the voice of the central bank to cut interest rates is growing louder and louder. It is still possible to reduce RRR and cut interest rates in the future. Many people in the fund industry believe that although the spread of credit bonds has been slightly lower than the historical neutral level, the investment value of bonds is still worth looking forward to.