Core Viewpoint - The article discusses the significant divergence in performance among bond funds, attributing it to the different "schools" or types of bond funds available in the market [1]. Summary by Category Bond Fund Types - **Short to Medium-Term Bond Funds**: Focus on bonds with maturities of 1-3 years, primarily investing in high-rated government bonds and credit bonds. They generally offer annualized returns higher than money market funds, suitable for short-term capital (half a year to 1 year) and conservative investors. High liquidity allows for easy redemption [1]. - **Long-Term Bond Funds**: Invest in bonds with maturities of 5-10 years, typically offering annualized returns higher than short to medium-term bond funds. These funds are suitable for long-term idle capital and investors who can tolerate volatility over a period of 1 year or more [2]. - **Pure Bond Index Funds**: Track specific bond indices (e.g., government bonds, policy bank bonds) and generally provide slightly lower returns than actively managed funds. They are suitable for investors preferring transparency and low-cost allocation, with moderate liquidity requiring attention to index rebalancing cycles [2]. - **Enhanced Bond Funds**: Comprise at least 80% bonds and may include convertible bonds or stocks (up to 20%). They typically offer higher returns than pure bond indices and are suitable for investors seeking yield enhancement while being able to accept short-term drawdowns [2]. - **Mixed Bond Funds**: Invest 60%-80% in bonds and 20%-40% in stocks, generally exhibiting higher volatility. They are suitable for investors with strong risk tolerance and are recommended for long-term holding (3 years or more) [2].