Core Insights - The article defines bond funds as investment funds that primarily invest in tradable government bonds, local government financial bonds, and corporate bonds [2] - The development history of bond funds includes the establishment of the first bond fund in the United States, Keystone Custodian Fund, in 1935, and the launch of China's first bond fund, Southern Baoyuan Bond A, in 2002 [2] - Bond funds can be classified into pure bond funds, hybrid bond funds, and convertible bond funds based on their ability to invest in the stock market, and into government bond funds, municipal bond funds, and corporate bond funds based on the types of bonds they invest in [2] - The main characteristics of bond funds include a focus on bonds as investment targets, with over 80% of fund assets invested in bonds, offering relatively stable returns with lower risk compared to equity funds, but also lower expected returns [2] - Risks associated with bond funds include interest rate risk, credit risk, early redemption risk, and inflation risk, with rising market interest rates potentially leading to a decline in bond prices and a decrease in fund net value [2]