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What are the classifications of bond funds?
There are many kinds of bond funds, and the risk-return characteristics of different bond funds are also quite different. Understanding the types of bond funds will help us choose bond funds that are more suitable for us and invest in bond funds better.

According to the management mode.

According to different management methods, bond funds can be divided into active bond funds and passive bond funds, and passive bond funds are bond index funds.

Active bond fund is a fund that fund managers choose bonds for active investment, while bond index fund is a bond fund that tracks a specific bond index and replicates the performance of that index.

Most markets are active bond funds.

Depending on the mode of operation

According to the different modes of operation, bond funds are divided into open-end bond funds and bond funds with a certain closed period.

Open-end bond funds can be purchased and redeemed normally within the trading day, while bond funds with a certain closed period are allowed to purchase and redeem within the closed period and can only be traded within the agreed open period.

According to the investment scope

According to the different investment scope, bond funds are divided into pure bond funds, primary bond funds and secondary bond funds.

Pure debt fund is a fund whose assets are all invested in bonds; Tier 1 bond funds are funds that can allocate a small amount of convertible bonds and all other assets are invested in bonds; The secondary bond fund is a fund that invests more than 80% of its assets in bonds and a small part of its assets can be invested in stocks.

Divided by the expiration date

According to the maturity of bonds, there are short-term debt funds and medium-and long-term debt funds, which is only a subdivision of pure debt funds.

Short-term debt funds are funds that invest in high-grade credit bonds within one year, while medium-and long-term debt funds are funds with a longer investment period.

By bond type

According to different types of bonds, bond funds can be divided into interest rate bond funds and credit bond funds.

Interest rate bond funds mainly invest in interest rate bonds such as government bonds and local government bonds, while credit bond funds mainly invest in corporate bonds and corporate bonds.