1. The main investment object of convertible bonds fund is convertible bonds, and the main investment of overseas convertible bonds fund also includes convertible preferred shares, so it is also called convertible funds. Investors who hold convertible bonds can convert bonds into stocks during the conversion period, or sell convertible bonds directly in the market for realization, or choose to hold bonds at maturity and collect principal and interest.

2. The basic elements of convertible bonds include benchmark stock, bond interest rate, bond term, conversion term, conversion price, redemption and resale terms, etc. Convertible bonds are a mixture of ordinary bonds and options that can be converted into stocks. The difference between the convertible bond price and the benchmark bond price constitutes the value of the implied option.