The annualized rate of return of bond funds is usually maintained at around 5%, which is higher than that of bank financial management, treasury bonds and other products in the same period. The income of bond funds depends on the management capabilities of the fund manager and the monetary policy at the time.

Bond funds, also known as bond funds, refer to funds that specialize in investing in bonds. They pool the funds of many investors and invest in bonds to seek relatively stable returns.

In China, the investment objects of bond funds are mainly treasury bonds, financial bonds and corporate bonds.

Introduction to the characteristics and advantages of bond funds ① It allows ordinary investors to conveniently participate in investments in inter-bank bonds, corporate bonds, convertible bonds and other products.

These products have various inconvenient restrictions on small funds. Buying bond funds can break through these restrictions.

②When the stock market is down, the income of bond funds is still very stable and is not affected by market fluctuations.

Because the returns of the products invested in bond funds are very stable, the corresponding fund returns are also very stable. Of course, this also determines that the returns are subject to the interest rates of the bonds and will not be too high.

The annual interest rate of corporate bonds is around 4.5%. After deducting the fund’s operating expenses, the annual rate of return is guaranteed to be between 3.3% and 3.5%.

Disadvantages ① Only when held for a long time can relatively satisfactory returns be obtained.

②When the stock market is booming, the income is still stable at the average level. Compared with stock funds, the income is lower. When the bond market fluctuates, there is even a risk of loss.

Bonds (Debenture) are securities issued by the issuer to raise funds, pay a certain percentage of interest at an agreed time, and repay the principal at maturity.

Its essence is a certificate of debt, which has legal effect. The issuer is usually the government, enterprise, bank, etc.

Government bonds have the lowest risk because they are guaranteed by government taxes, but they also have the smallest return.

Corporate bonds are the riskiest and have correspondingly higher returns.

The relationship between bond buyers or investors and issuers is a creditor-debt relationship. The bond issuer is the debtor, and the investor (bond buyer) is the creditor.

Bond funds and bonds are both securities, and both have the characteristics of returns, liquidity, risk, and maturity of securities.

Their investments are all securities investments.