Both funds and bonds are important parts of the financial investment market. Both funds and bonds have wealth management products, with different risk levels and different income levels. Generally speaking, funds can invest in bonds and stocks, and the overall risk of funds will be higher.

Fund, in English, refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The fund we are talking about mainly refers to the securities investment fund.

According to whether fund units can be increased or redeemed, they can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market. According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.

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What are the risks of bond funds?

The first reason: low risk. Individuals who buy bonds may suffer the risks brought by bonds. Bond funds can effectively reduce the risks that a single investor may face when investing in different bonds.

The second reason: expert financial management. With the increasing diversification of bond types, ordinary investors should not only carefully study the issuer, but also judge macroeconomic indicators such as interest rate trends, which is often beyond their ability. Investing in bond funds is convenient and worry-free, and you can also enjoy professional investment services.

The third reason: strong liquidity. Many bonds are illiquid, and investors may have to hold them until the maturity to realize the income. By indirectly investing in bonds through bond funds, high liquidity can be obtained, and the bond funds held can be transferred or redeemed at any time. It can be seen that investing in bond funds has many advantages over directly investing in bonds. There are big data statistics, from 2007 to 20 17, the average yield of bond funds.