Bonds are loans and IOUs borrowed by the state or enterprises from the public or a specific group of people, indicating fixed income. National debt is issued by the state, so it is safe. If it is held at maturity, the income is fixed.

In fact, because of the change of interest rate, the book income of national debt will not remain unchanged. For example, the national debt B issued later may be because the interest rate is higher, and those who hold the national debt A with lower interest rate will sell A and then buy B, resulting in the price of A falling. ..

Unlike corporate bonds, national bonds have no credit risk, only interest rate risk, also known as interest rate bonds.

Generally speaking, the national debt is safe and the income is guaranteed. Even if the loss is not too much, the income in some years is also very good.

National debt is more suitable for the elderly, or people with large funds, and pays more attention to steady income.

What is a fund?

A fund is a product invested and issued by a fund company. These products are very rich and can be divided into bond funds, convertible bonds, hybrid funds and equity funds according to their safety.

If you buy a fund that specializes in investing in government bonds, then income one should also be stable.

Other types of products account for a relatively high inventory and fluctuate greatly. As shown above, compared with the fluctuation of CSI 300, the fluctuation of bonds is Mao Mao Rain.

What products are you suitable for?

So should we buy government bonds or funds?

In terms of transaction convenience, it is more convenient for the fund to purchase and redeem, and the income of national debt or national debt fund may not be much different. If you buy a non-negotiable national debt, you can only hold it at maturity.

As far as the capital threshold is concerned, the fund 1 yuan began to purchase, and the national debt 100 yuan, the increase was an integer multiple of 100 yuan. In addition, some bonds are only open to institutions.

In terms of product richness, the Fund has more choices, and may adjust the investment proportion of products with different expected returns according to requirements such as age and risk tolerance.

From the perspective of personal ability, individuals prefer to choose funds and be managed by professionals, which can reduce the pressure and focus on improving the income of the main business. The disadvantage is that you have to pay management fees, but I believe there will be products with good management and reasonable management fees for you to choose from.