Bond funds refer to funds with fixed-income financial instruments such as treasury bonds and financial bonds as the main investment objects, and are also called "fixed-income funds" because of their relatively stable product returns. So what kind of investment is bond fund suitable for?

Is bond fund suitable for long-term investment or short-term investment?

Bond fund is a financial management tool with low investment starting point, relatively low risk, relatively balanced income and good liquidity. Most funds are long-term wealth management products, and long-term holding has more advantages in cost than short-term holding. Short-term fund investment may not make money, but also lose the cost of fund operation.

What are the two major types of expenses incurred in the operation of the fund?

1 refers to the expenses incurred by fund investors in the process of fund sales, mainly including subscription fees, subscription fees, redemption fees, fund conversion fees, etc.

The other category is the expenses incurred in the process of fund management, mainly including fund management fees, fund custody fees and information disclosure fees. These expenses are borne by the assets of the fund. For money market funds and some bond funds that do not charge subscription and redemption fees, a certain fee can also be extracted from the fund assets at a ratio of not more than 2.5‰, which is used exclusively for fund sales and services to fund holders.

Funds are financial management tools suitable for long-term holding. Compared with money funds, bond funds have higher returns and lower risks, and are also a better choice for investment and financial management.