Bond fund is an investment tool, which is a fund to buy various bond assets through investors' funds. Bond fund stocks refer to the stocks acquired by investors when they buy bond funds. This paper will introduce the definition, characteristics and related knowledge of bond fund stocks.
What is a bond fund? Bond funds are a kind of funds issued and managed by fund companies, and their main investment targets are various bonds. The investment strategies of bond funds can include buying bonds, corporate bonds, convertible bonds and other different types of bonds. Investors can indirectly hold bonds and enjoy the interest income brought by bonds by purchasing the shares of bond funds.
The operation mode of bond funds is to pool investors' funds, which are managed by fund companies professionally to help investors achieve the purpose of dispersing risks and reducing risks. According to the investment strategy and objectives of the fund, the fund company will select and purchase appropriate bond assets in order to obtain stable income.
The characteristics of bond funds include:
The risk is relatively low: bond funds are highly stable because they mainly invest in the bond market. As a fixed-income asset, bonds have certain principal guarantee and fixed interest income. Strong liquidity: bond funds are usually listed and traded on exchanges, and investors can realize the flow of funds at any time by buying and selling bond fund stocks. Stable income: the income of bond funds mainly comes from the interest income of bonds, so the income of bond funds is relatively stable compared with high-risk assets such as stocks. Bond fund stocks Bond fund stocks refer to the stocks acquired by investors when they buy bond funds. Generally speaking, the price of bond fund stocks is linked to the net asset value of the fund. When the fund's net asset value rises, the stock price rises. On the contrary, the net value of the fund fell and the stock price fell.
Investors can buy and sell bond fund stocks through the stock exchange, so that investors can buy and sell bond fund stocks at any time to realize the liquidity of funds. The transaction cost of bond fund stocks is low, and usually only a certain transaction fee is needed.
The risk of bond fund stocks is low, because its investment target is bond assets, and bonds, as fixed-income assets, have relatively stable returns and little volatility. Bond fund stocks are suitable for investors who pursue stable income and conservative investment.
To sum up, a bond fund is a fund that purchases various bond assets through investors' funds. Bond fund stocks are stocks acquired by investors when they buy bond funds. Bond funds have the characteristics of relatively low risk, strong liquidity and stable income. Bond fund stocks are suitable for investors who pursue stable income and conservative investment. Investors can buy and sell bond fund stocks through the stock exchange to realize the liquidity of funds.