Primary debt funds also belong to the subdivision of "fixed income +" funds, but most investors know little about them.
Today, the editor will take you to take a look at what does a primary debt fund mean? A primary debt fund mainly invests in fixed-income financial instruments such as treasury bonds, financial bonds, and central bank bills, and does not directly invest in the secondary market.
A bond fund that buys equity assets such as stocks and warrants, but can pursue increased returns through convertible bond investment.
What is the difference between a primary debt fund and a pure debt fund? The main difference between a primary debt fund and a pure debt fund is whether to invest in convertible bonds.
Among them, primary debt funds invest in convertible bonds, while pure debt funds do not invest in convertible bonds.
Convertible bonds are a special kind of bonds. Investors have the right to convert them into shares of the issuing company within a specified period according to a certain proportion and corresponding conditions. Therefore, convertible bonds have the characteristics of ordinary bonds and equity assets.
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Which investors are suitable for primary debt funds? 1. Investors who can withstand small fluctuations and hope to increase returns. Primary debt funds participate in convertible bond investments, and the risk and return characteristics are higher than those of pure debt funds. Therefore, for those who are not satisfied with pure debt funds,
For investors who can tolerate small fluctuations in fund returns, primary bond funds are a good choice.
2. Investors with asset allocation needs. The main investment target of primary debt funds is bond assets. Although it participates in convertible bond investment, which increases certain risks, its fluctuations and drawdowns are controllable, and it is still a better asset allocation.
"Ballast Stone".
Therefore, it is more suitable for investors with asset allocation needs.
The above are some contents of the primary debt fund, I hope it can help everyone.