The main factors that determine the bond yield are coupon rate, maturity, face value and purchase price.
Bond funds are:
Bond funds, also known as bond funds, refer to funds that specialize in investing in bonds. By concentrating the funds of many investors, we can make portfolio investment in bonds and seek relatively stable returns. In China, bond funds mainly invest in government bonds, financial bonds and corporate bonds.
Are bond funds risky?
Bond funds are funds that invest in bonds. By pooling the funds of many investors, it makes portfolio investments in bonds and seeks stable returns. According to the classification standard of China Securities Regulatory Commission, bond funds refer to funds with more than 80% of fund assets invested in bonds.
Because bond funds invest in bonds, the risks of bonds may include interest rate risk and credit risk, so bond funds are also risky. You can refer to the risk level of the fund and check the risks revealed in the fund contract.
A bond fund is a fund that invests all its assets in the bond market. Its income mainly comes from the coupon rate of bonds, and part of its income comes from the spread of investment and trading bonds. Investors can choose bond funds through the following techniques:
1. Look at the performance of bond funds. Although most of the income of bond funds comes from coupon rate, the spread of investment and trading funds will directly affect the income of bond funds, so the better the past performance, the higher the investment level of this fund manager.
2. If investors want to get higher returns, they can choose active bond funds; If you are worried about risks, investors who want to obtain stable income can choose passive bond funds.
3. Look at the target of fund investment, and try to choose funds above 3A level, because these bonds have high credit and almost no default risk.
4. When the state raises the bank interest rate, it will buy bond funds, and the income is relatively high at this time.
Generally speaking, the risk faced by bond funds is very small. If investors want to pursue higher returns, they will choose active bond funds. If you want to pursue stable income, choose passive bond funds.