Convertible bond fund is a special fund product, with a high proportion of investment in convertible bonds. The proportion of convertible bonds invested by convertible bonds funds is generally around 60%, which is higher than the proportion of convertible bonds usually held by bond funds. Take the Industrial Convertible Bond Fund as an example. The fund mainly invests in convertible bonds, and the proportion of stock investment does not exceed 30%.
For many investors who are not familiar with convertible bond investment, convertible bond funds have two advantages. According to the researcher of Tianxiang Investment Financial Innovation Department, one of the advantages of convertible bonds fund is that the pricing mechanism of convertible bonds is very complicated, which is difficult for ordinary investors to master and needs more research energy. Fund companies have specialized personnel to study and track convertible bonds, which has professional advantages over individual investors. Moreover, by pooling small funds to invest in the convertible bond market, fund companies can minimize the cost of information collection, research and trading, thus obtaining economies of scale and enabling investors to share the overall benefits of the convertible bond market.
Another advantage of convertible bond fund lies in its unique risk-return characteristics. The main investment object of convertible bonds fund is convertible bonds, which have the characteristics of low risk and high return. Convertible bond funds usually use the bond characteristics of convertible bonds to avoid systemic risks and individual stock risks, pursue the security and stable income of their portfolios, and use embedded stock options of convertible bonds to further improve the fund's income level in the stock market rise.