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What's the difference between primary bonds and secondary bonds?
With the continuous development of domestic financial market, the product line of fund products is becoming more and more perfect. At present, domestic bond funds can be further subdivided according to the limitation of their investment scope. Bond funds can be divided into pure debt funds, first-class debt funds and second-class debt funds according to the differences in investment in bonds, subscription of new shares and secondary market stocks. If you choose to buy a bond fund, how do you choose between pure debt fund, primary debt base and secondary debt base? Let's first look at the risks between different bond funds. What is the difference between a primary debt base and a secondary debt base? Secondary debt base, investment target: in addition to fixed-income financial instruments, participate in stock trading in the secondary market as appropriate, and also participate in asset allocation of new shares investment in the primary market: high-yield bond portfolio will select new shares to increase income. Product features: pure debt+new shares+selected stocks. Risk characteristics: medium and low risk. Tier 1 fund, investment target: in addition to fixed-income financial instruments, participate in the investment of new shares in the primary market. Asset allocation: income bond portfolio plays new shares. Product features: pure debt+new shares. Risk characteristics: medium and low risk.

Pure debt fund, investment target: do not participate in stock investment, only invest in fixed-income financial instruments. Asset allocation: high-yield bond portfolio. Product features: pure debt. Risk characteristics: low risk. It is not difficult to see that the biggest difference between the three bond funds lies in the different investment scope. Pure bond funds can invest in limited wealth management products and can only invest in fixed-income wealth management products. On this basis, the primary debt base can participate in the investment of new shares in the primary market, and the secondary debt base expands the investment scope on the basis of the primary debt base, so it can properly participate in the stock trading in the secondary market. Among the three, the secondary debt base has the highest risk, but the expected return is also the highest; It is difficult to make a big breakthrough in the income of pure debt funds, but its advantage lies in its stable income and low risk. Knowing the characteristics of the three bond funds, it is not difficult to find that the pure debt fund and the primary debt base are more suitable for conservative investors who pursue stable income, while the secondary debt base provides a more radical choice for investors who pursue low risk. The secondary debt base can be both offensive and defensive in the volatile market because of its configuration characteristics. On the basis of bond market returns, the probability of seizing the opportunity of band stock market to obtain excess returns will increase.