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HomeLatestBriefly describe the role of bond funds in a portfolio

Briefly describe the role of bond funds in a portfolio

Bond funds mainly invest in bonds, so they are attractive to investors who seek stable income.

Bond funds are usually less volatile, so they are often regarded by investors as a moderate return and risk investment tool.

In addition, when the bond fund and fund for appropriate portfolio investment, often can better diversify investment risk.

Compared with other types of funds, stock funds have higher risk but higher expected return;

Hybrid funds are designed to allow investors to diversify their investments by choosing a single fund, rather than buying different stock funds, bond funds and money market funds.

Hybrid funds use both aggressive and conservative investment strategies, and their returns and risks are lower than those of stock funds, higher than those of bonds and money market funds, so they are financial products with moderate risks.

Open-end fund refers to a fund operation mode in which the fund sponsors sell fund units or shares to investors at any time when the total size of fund units or shares is not fixed, and can redeem the issued fund units or shares at the request of investors according to their needs.