Bond funds are funds that mainly invest in bonds, and earn income by buying bonds such as government bonds and corporate bonds in the market. According to the different investment methods, bond funds can be divided into pure bond type and mixed type. Pure bonds are investment bonds, accounting for at least 80%, and mixed bonds are investment bonds and stocks.

Generally speaking, bond funds do not charge subscription or subscription fees, and the redemption rate is also low. Bond funds pay attention to current returns, with low risks and returns.

Second, the classification of bond funds

According to the different types of bonds invested, bond funds are divided into the following four types:

1, national debt fund, which mainly invests in government-issued bonds (national debt) such as treasury bills;

2. Municipal bond fund, which mainly invests in government bonds (municipal bonds) issued by local governments;

3. Corporate bond funds, which mainly invest in bonds issued by various companies (corporate bonds);

4. International bond funds. Mainly invest in various bonds (international bonds) issued in the international market;

Three, according to the division of bond fund investment targets, can be divided into the following categories.

1, national debt. Credit risk: low; Liquidity: good; Interest rate range that can be exchanged or traded in advance: 2.5%-4.5%; Term: short term: 1 year; Mid-term: 1- 10 year; Long term: 10 years or more.

2. Credit risk of credit bonds: medium to high; Liquidity: good; The liquidity of some weights is low; Interest rate range: 4%-8%. Credit bonds refer to bonds that are not secured by any assets of the company and belong to unsecured bonds. The risk is relatively high, but the expected annualized expected rate of return is high.

Judging from the credit rating, it can be divided into two categories: advanced and low:

Medium-to-high-grade debt: generally refers to bonds with credit rating above AA and low credit default rate, such as bonds issued by large state-owned enterprises and multinational companies. For example, UBS SDIC high-grade debt base is one of the debt bases with such bonds as the main investment direction. Correspondingly, the default probability of low-rated credit bonds is high, such as financial crisis and corporate bonds on the verge of bankruptcy.

3. Credit risk of convertible bonds: low; Liquidity: higher than corporate bonds and lower than stock interest rate; Change range:1%-3%; Duration: no more than 5 years

4. Other targets, such as subscription of new shares, purchase of stocks, warrants, interbank borrowing, etc. Generally, there is a small proportion of investment in such targets in order to improve the expected annualized income beyond expectations. But it is also a "double-edged sword", and the breaking of new shares will be counterproductive.