The face value of convertible bonds is 100 yuan, and the capital preservation price is face value plus interest. However, the actual purchase price may be higher than 100 or lower than 100. If you buy at a price higher than 100, because the stock price falls, you will probably lose money if you sell it before the holding expires.
The purchase price risk within 100 is relatively low. As long as it is held continuously, it is not a big problem to return it. When the subscription price of convertible bonds exceeds 1 10 yuan, it loses its capital preservation function and is no longer suitable for operation.
2. Timing of trading
Convertible bonds have both stock base and debt base, which can be held for a long time or converted into shares halfway according to market conditions. When the stock market is not good, you can continue to hold it as a bondholder, wait for the bond price to rise slowly, and get back the principal and interest after the bond expires, so the possibility of loss is less. When the stock market is good, convertible bonds can be converted into stocks.
Convertible bonds support T+0, that is, they can be sold on the day of purchase. If the bond price fluctuates greatly, you can also choose to sell it at a high point in advance and get back the principal.
3. Early redemption clause
In order to protect the company's interests, convertible bonds are generally equipped with an early redemption clause, that is, when the stock price rises far beyond the agreed conversion price of convertible bonds, the company can force early redemption at the agreed price. Therefore, investors need to grasp the opportunity to improve the stock, so as not to lose the expected income due to early redemption.
How to buy convertible bond funds?
1. Understand the investment scope of bond funds: The reason why bond funds resist risks in the stock market shock lies in the "separation" relationship between bond funds and the stock market to a certain extent, that is, most bond funds do not invest in the stock market, but mainly make profits by investing in the bond market. In addition, although enhanced bond funds can invest in the stock market through "issuing new shares" and "investing in convertible bonds", there are strict proportion restrictions.
2. Pay attention to the transaction costs of bond funds: the transaction costs of different bond funds are 2-3 times different, and investors should try to choose bond fund products with lower transaction costs. In addition, the old bond funds often have subscription and redemption fees, while the newly issued bond funds mostly use sales service fees instead of subscription and redemption fees, which are accrued from the fund assets and investors do not need to pay when trading.
3. Don't expect too much from the income of bond funds: In 2007, the average income of bond funds was around 20%, but its "excess income" mainly came from new share subscription and convertible bond investment. In 2008, due to the intensification of stock market volatility, the investment income of new share subscription and convertible bond investment will be tested. Therefore, investors need not expect too much from bond funds.
4. For open-end funds, the bond and hybrid selection methods are the same as those of ordinary funds. For example, instead of trying to buy a new fund, we should examine whether the past performance is stable and excellent, whether the fund manager's investment management ability is sound, whether he has experience in managing the same type of fund, how the return during his tenure is, whether the fund company's reputation is good, and whether it can control risks well.
5. If you invest in the convertible bond index fund, you can get roughly the same income as the trend of the convertible bond index, and judge whether the ability and error of the fund to track the underlying index are small. There are also some graded funds with convertible bonds index, which divide a fund into two or three different A/B/C categories: one is usually fixed income, with little risk and income. Generally speaking, the probability of principal loss is very low. Class b and class c are usually levers, which will amplify the risks and benefits several times. Many of these graded funds are listed and traded, that is, they can be purchased in stock accounts. Please note that the risks and benefits of such funds are significantly higher than those of ordinary funds.
There are two ways to make profits from convertible bonds: one is to hold convertible bonds and get the agreed coupon rate, which is usually very low; The other is to convert it into stocks within the agreed time, just like buying and selling stocks, and earn the difference income by discounting. As for how to grasp the price fluctuation, since you have bought a convertible bond fund, you should hand it over to a professional fund manager. Generally speaking, in a favorable stock market environment, convertible bond funds with higher positions and higher leverage have stronger ability to obtain excess returns.