Bond funds, also known as bond funds, refer to funds that invest exclusively in bonds, that is, more than 80% of the funds will be invested in bonds, and a small part will be invested in the stock market. Therefore, bond funds have the characteristics of stable income and low risk. So, do you know what the return of bond funds is generally? Can it reach 50%? Let's take a look.

Can the income of bond funds reach 50%?

Under normal circumstances, the income of bond funds is difficult to reach 50%. As mentioned above, more than 80% of the funds of bond funds will be invested in bonds, including inter-bank bonds, corporate bonds, convertible bonds and other products. The income of such products they invest in is also very stable and will not cause too much risk. Generally, the principal and interest are obtained at maturity, which means that the income of bond funds will also be subject to the interest rate of bonds, which will not be too high.

For example, the annual interest rate of corporate bonds is around 4.5%. If the bond fund mainly invests in corporate bonds, the annual return of investors can be guaranteed to be between 3.3% and 3.5% after deducting the operating expenses of the fund.

What is the main source of its income?

In addition to most investors investing in bonds, bond funds also invest in the stock market. So its income comes not only from ordinary bonds, but also from convertible bonds and new shares.

Generally speaking, bond funds have stable returns, low risks and are friendly to new investors.