Bond funds refer to funds in which more than 80% of fund assets are invested in bonds such as government bonds and corporate bonds (including convertible bonds).
Partial debt fund refers to a fund that invests most of its assets in bonds. The general bond ratio is 50%-70%, and the stock ratio is 20%-40% (the specific investment ratio is subject to each fund).
The difference between the two:
1, the proportion of investment bonds is different.
Debt-biased funds are literally biased towards funds that mainly invest in bonds. Generally, the proportion of bonds is 50%-70%, while bond funds mean that more than 80% of fund assets are invested in bonds.
2. Different due dates
The maturity date of partial debt fund is uncertain. Because partial debt funds invest in various bonds and some stocks, there is no specific maturity time, which is generally decided by the fund company. Bond funds have specific maturity dates, such as one year, three years, five years and so on.
3. Different ownership
The partial debt fund represents a trust relationship, and the two sides of the relationship are mainly investors and managers. Bond fund is a bond relationship, and the relationship between ownership parties is different.
4, the output is different.
There are many types of investment in partial debt funds, so the rate of return is not fixed, and the proportion of investment stocks in the fund portfolio is greater than that of bond funds, so the rate of return is generally higher than that of bond funds. The yield of bond funds is fixed, and investors can know its yield before buying.
5. Different risks
The investment targets of partial debt funds are various, and the proportion of stock investment exceeds that of bond funds, so the risk will be greater than that of bond funds.