A bond fund is a securities investment fund that invests in bonds. It seeks relatively stable expected annualized returns by pooling the funds of many investors and investing in bonds in a portfolio.

Bond funds are usually medium-risk varieties among securities investment funds. Their expected risks and expected annualized returns are usually higher than money market funds and lower than hybrid funds and stock funds.

Bond funds mainly invest in treasury bonds, convertible bonds, and corporate bonds. According to the China Securities Regulatory Commission’s classification standards for fund categories, bond funds are those that invest more than 80% of fund assets in bonds.

Bond funds have low risks and average expected annualized returns; they are suitable for prudent and conservative investors who pursue relatively safe principal and slightly higher returns.

Bond funds are generally less volatile than stock funds, so they are often considered by investors to be investment tools with expected annualized returns and moderate risks.

The main investment risks of bond funds include expected annual interest rate risk, credit risk, early redemption risk and inflation risk.

Expected annualized interest rate risk means that the price of a bond is closely related to the market's expected annualized interest rate changes, and moves in the opposite direction.

Credit risk refers to the risk that the bond issuer is unable to pay interest on time and return the principal when due.

Early redemption risk refers to the risk that a bond issuer may repurchase a bond before its maturity date.

Inflation risk refers to the fact that inflation will devour the purchasing power formed by the fixed expected annualized expected return.

Funds are divided into stock funds, hybrid funds, bond funds, currency funds, etc., and their relative risks range from large to small.

The risks of bond funds vary greatly because bond funds are not simply funds that invest in bonds. They are divided into "pure debt type" and "partial debt type".

Pure debt bond funds have less risk. More than 70% of the funds are invested in bonds, so the risk is the lowest. Moreover, most overseas bond funds have regular and stable dividend distribution, which is suitable for conservative and stable investors.

Bond funds that invest in convertible bonds, "new stocks", graded bonds, etc. are relatively risky.

Convertible bonds refer to bonds that can be converted into company stocks under certain conditions. Because of this, the price changes of convertible bond funds have a certain relationship with the corresponding underlying stocks, but they are protected by debt and the risk of decline is limited.

, there is no limit to the rise. The expected annualized expected return-risk ratio of this type of asset is relatively good, and it is a very advantageous asset.

Nowadays, some bond funds use a considerable part of their funds to "purchase new stocks" and can continue to hold the stocks for a certain period after the new stocks are listed. The risks and expected annualized returns of such new stock funds are higher.

Are there any bond funds that can achieve higher expected annualized returns while keeping risks under control?

have!

That's a graded bond fund.

When you are optimistic about the market, you can carry out moderate leverage operations to expand the expected annualized expected rate of return. You can also set a certain ratio according to your own situation to classify shares and risks, so that you can win a higher expected annualized expected rate of return.

while also controlling risks.