Bond funds not only invest in bonds, but also have a small amount of funds to invest in the stock market. In addition, investing in convertible bonds and issuing new shares are also important channels for bond funds to obtain income. How about investing in bond funds? Let's see what its advantages and disadvantages are.

Advantages of bond funds

1 It is convenient for ordinary investors to participate in investment in inter-bank bonds, corporate bonds, convertible bonds and other products. These products have various inconvenient restrictions on small funds, and buying bond funds can break through this restriction.

When the stock market is in a downturn, the income of bond funds is still very stable and is not affected by market fluctuations. Because the product income invested by bond funds is very stable, the corresponding fund income is also very stable. Of course, this also determines that its income is subject to the interest rate of bonds and will not be too high.

Disadvantages of bond funds

1 Only if you hold it for a long time can you get a relatively satisfactory return.

When the stock market soared, the income remained stable at the average level, which was lower than that of equity funds. When the bond market fluctuates, there is even the risk of loss.