Yes. Bond funds mainly invest in bonds. The fund income is determined by the bonds invested. The income from bonds mainly includes the interest income of bonds and the price difference of bond buying and selling. The interest income of bonds is calculated based on 365 days, so bond funds will invest during the holidays. Calculate the benefits.

Bond funds, also known as bond funds, refer to funds that specialize in investing in bonds. They seek relatively stable returns by pooling the funds of many investors and investing in bonds in a portfolio.

The investment objects of bond funds are mainly treasury bonds, financial bonds and corporate bonds.

Influencing Factors

The two major factors that affect the performance of bond funds are: interest rate risk, which is the sensitivity of the bonds invested to changes in interest rates (also known as duration); It's credit risk. When choosing a bond fund, be sure to understand its interest rate sensitivity and credit quality. Only on this basis can you understand how high the risk of the fund is and whether it meets your investment needs.

Features Introduction

Advantages

① It allows ordinary investors to conveniently participate in investments in inter-bank bonds, corporate bonds, convertible bonds and other products. These products have various inconvenient restrictions on small funds. Buying bond funds can break through these restrictions.

②When the stock market is down, the income of bond funds is still very stable and is not affected by market fluctuations. Because the returns of the products invested in bond funds are very stable, the corresponding fund returns are also very stable. Of course, this also determines that the returns are subject to the interest rates of the bonds and will not be too high. The annual interest rate of corporate bonds is around 4.5. After deducting the operating expenses of the fund, the annual rate of return is guaranteed to be between 3.3 and 3.5.

Disadvantages

① Only when held for a long time can relatively satisfactory returns be obtained.

②When the stock market is booming, the income is still stable at the average level. Compared with stock funds, the income is lower. When the bond market fluctuates, there is even a risk of loss.

Based on the types of bonds invested, bond funds are divided into the following four types:

① Government bond funds, which mainly invest in bonds issued by the government (government bonds) such as treasury bills;

②Municipal bond funds, mainly invest in public bonds (municipal bonds) issued by local governments;

③Corporate bond funds, mainly invest in bonds (corporate bonds) issued by various companies;

④International bond funds. It mainly invests in various bonds issued in the international market (international bonds).

Choose common sense

To know how to choose bond funds, you first need to understand what bonds are. Investing in bonds is equivalent to lending to the bond issuer. The principal will be repaid when the bond matures, and interest income will be received regularly, such as every six months. How long the bond will take to mature and the issuer's repayment ability are the two most important factors to care about when investing in bonds.