After the fund focusing on the "fixed income plus" strategy rose in the past two years, many investors thought that there was a new product, but they could not find this classification, which may be a little confused. Bian Xiao compiled the ten questions and ten answers of the fund "fixed income+"here for your reference. I hope everyone will gain something in the reading process!

How to understand "fixed income+"?

Southern fund: "Fixed income plus" refers to the investment strategy of fund products "based on fixed income, enhancing rights and interests", aiming at reducing net value fluctuation, smoothing income curve, having both offensive and defensive functions, and striving for victory in stability. It is a good choice for family financial investment. For example, the partial debt hybrid fund is a typical "fixed income+"strategic fund. By the end of 2020, the stock of partial debt hybrid funds exceeded 500 billion yuan, 2.5 times higher than the140 billion yuan at the end of 20 19. As for the reasons for the scale growth, it is not difficult to see that with the continuous accumulation of household wealth of China residents, household asset allocation has a higher preference for sound investment.

How to judge whether a fund is a "fixed income+"product?

Jing Shun Great Wall Fund: Generally speaking, "fixed income+"products are funds that invest a certain proportion of equity assets in addition to bond assets. This "+"may be stocks, including new shares, convertible bonds, or some hedging instruments. From the risk point of view, the risk-return characteristics of "fixed income+"are higher than those of pure debt products, and the withdrawal and fluctuation are greater than those of pure debt funds; However, compared with mixed stock funds, "fixed income+"products are relatively stable and have a small retreat. In addition, "fixed income+"products have different risks due to the different proportion of "+"equity assets, which can be combined with the risk-adjusted income, which is also a common indicator when the market depicts fund products.

What are the characteristics of "fixed income plus"?

Cathay pacific fund: The "fixed income plus" products meet the requirements of the new asset management regulations, and also meet the needs of investors with low risk appetite who want to get some Alpha income. In the context of the break of Xinhui, the yields of relatively risk-free products such as money funds and bank wealth management have been falling. "Fixed income+"products cater to the needs of stable investors. Most of them invest in low-risk assets such as bonds and a small amount of "+"risk assets, pursuing long-term stable income.

Judging from the basic assets-bond assets, the fundamentals of the current bond market are gradually improving, and the interest rate level continues to increase slightly. It is expected that there will be a downward trend in the second half of the year. Therefore, in addition to its own coupon income, bonds will also have capital gains brought about by the downward coupon, so the combined bottom position may have a good performance. Judging from the "+"equity assets, there are structural opportunities for the fluctuation of the A-share market, which is expected to bring certain excess returns to the portfolio.

What are the differences between "fixed income+"products?

ICBC Credit Suisse Bank Fund: "Fixed income plus" is actually an investment strategy, which mainly invests in fixed income assets such as bonds, including interest rate bonds and high-grade credit bonds, that is, based on fixed income, and strives to obtain stable basic income. The "+"part is mainly fixed income, including equity assets such as stocks, treasury bonds futures, stock index futures, private placement, new shares and convertible bonds. This part is usually low and used to add color and fragrance. "Fixed income+"products are generally divided according to the composition of materials. For example, the secondary debt base in Public Offering of Fund can invest in convertible bonds and secondary market stocks, and the position of equity assets is up to 20%; Partial debt hybrid funds can participate in innovation and invest in derivatives such as stock index futures and government bond futures, and the stock position generally does not exceed 40%. In addition, in the FOF fund, the ordinary FOF with partial debt and pension FOF can also be included in the category of "fixed income+".

What are the characteristics of excellent "fixed income+"products?

Harvest fund: At present, there is still a lack of a strict and unified definition of "fixed income+". The "+"in "fixed income+"can be understood as three levels. One is the increase in asset classes. Compared with pure fixed income products, "fixed income+"can invest in some equity assets; The second is the increase of strategy. Pure bond investment mainly includes duration strategy and credit strategy, and "fixed income+"will also increase the absolute income strategy of stock bond hedging; The third is to increase the income after risk adjustment, which is reflected in increasing the volatility of the portfolio and enhancing the income under moderate control.

On this basis, an excellent "fixed income plus" product should have three characteristics. First, the income of fund products is more in line with expectations; Second, the fund manager is excellent. In addition to his rich experience, he is better at controlling the fluctuation of portfolio from the perspective of asset allocation and maintaining a certain margin of safety; The third fund company has a deep accumulation of investment and research and an excellent investment and research team, and has a deep accumulation of investment and research on various assets, and can allocate a number of assets from long-term dimensions such as trends and rhythms.

Which investors are suitable for "fixed income+"products?

Tian Hong Fund: If you have certain investment needs, but you are relatively risk averse. At present, bank time deposit, large deposit certificate, bank financing and money fund are the main financial management methods. In order to fight inflation, you want to start investing in fund products. Then, you can focus on "fixed income+"products.

Should "fixed income+"investment be timed? How long do you need to keep it?

Win-win fund: this kind of fund has relatively low requirements for buying opportunity, and investors can buy and hold it for a period of time at any time. It is more appropriate to hold "fixed income+"products 1~3 years. From the perspective of long-term returns, the yield of stocks is relatively high, but the main weakness of stocks is that they are too volatile in the short term and may not be held. If you can hold it for at least one year, it will be better to invest in "fixed income+"products, which is the backbone of medium-term idle money management and requires you to pay a certain time cost. But if you are really short of funds, it is still recommended to match some varieties with strong liquidity.

Is the current market suitable for investing in "fixed income+"products?

Caitong Fund: Before answering this question, we must first make clear the underlying assets and allocation strategy behind each "fixed income plus" strategy: usually backed by bond-type fixed income assets, a certain proportion of stocks, convertible bonds or derivatives are added, in order to obtain income other than pure debt assets in the medium and long term under the condition of controllable exit; The "+"part can be stocks, convertible bonds, fixed income, innovation, derivatives and so on. At present, we think that investors should pay more attention to whether the specific allocation strategy is a strategy or a large class of assets, which will bring excess positive returns in the medium and long term. This year, the screening ability of fixed-income projects has been improved, and the characteristics of stock performance differentiation will continue with high probability. Therefore, in view of the market environment with high probability and wide fluctuation this year, we recommend the fixed quantitative hedging strategy as the "+"sub-strategy of the "fixed income+"strategy.

Will "fixed income+"products be risky?

Nuoan Fund: "Fixed income+"is a big and general concept, which actually needs to be subdivided. The specific risk degree of products is positively related to the level of equity positions in products. Flexibility can bring opportunities for increasing returns and may also increase risks.

Generally speaking, most products can be divided into three categories according to the difference of income and retracement: positive, balanced and enhanced currency/short debt (expected income and retracement are arranged from high to low). Investors still have to choose their own varieties according to their investment risk preferences.

"Positive fixed income+"is suitable for investors with high stock base allocation to make allocation conversion in volatile market; "Balanced fixed income+"is suitable for investors who want to get higher income than wealth management and are unwilling to take too much risk; "Money/short-term debt enhanced fixed income+"meets the needs of cash management.

How to choose "fixed income+"products?

Bank of China Fund: The choice of "fixed income plus" fund should be evaluated from two dimensions: investors and products. As for investors themselves, we should assess their risk preferences as accurately as possible, especially their tolerance for retracement, and try to choose products suitable for their own risk level for investment, especially to avoid chasing up and down and intraday trading. In the product dimension, it focuses on evaluating the long-term performance of the fund, especially whether the fund can keep its investment style from drifting frequently for a long time. It is suggested that we should try our best to choose a fund that can adhere to its own style and characteristics for a long time and achieve sustained and stable excess returns in the past. In addition, the management of "fixed income+"products often depends on the asset allocation ability of fund companies, so it is suggested to choose products owned by fund companies with strong overall investment and research strength, as well as funds managed by fund managers with relatively mature investment experience and high market recognition.

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