Is the national debt income the same as the national debt fund income?
The income is different, because the national debt fund invests in a variety of national debt with different maturities and different interest rates. As a portfolio, it has different income compared with the single holding of national debt, so in theory, the income of national debt fund will be higher than that of national debt. But in fact, due to the fluctuation of market interest rate and a management fee paid by the national debt fund, its final actual income may not be as high as that of holding a savings bonds normally.
The income of national debt mainly comes from the fixed interest income with bonds. After holding the national debt, investors can pay it on the platform selling the national debt, so as to obtain the principal and the interest calculated by coupon rate. In the process of holding bonds, no matter how the market interest rate changes, it will not affect the holders.
Although the national debt fund also took a fancy to the interest rate, it has little to do with the bond itself. After all, when investors invest in treasury bonds funds, they know that even if they buy treasury bonds funds, it does not mean that these treasury bonds are their own. Therefore, the main purpose of investing in national debt is to take a fancy to the value embodied in national debt.
Then, when the bond interest rate in the market drops, the fixed interest rate of these bonds in the bond fund is relatively higher than the market interest rate, so the value reflected in the market is higher, and investors holding bond funds can also get higher returns; However, if the interest rate of market bonds rises, the relative interest rate of these bonds issued in the national debt fund will be low, the reflected value in the market will be low, and the income of investors will be relatively reduced.
Which one is easy to buy?
There is no obvious difference in the difficulty of purchasing the two. Generally, you can buy government bonds through underwriting platforms such as banks or brokers, or you can buy government bond funds through fund underwriting or consignment platforms such as fund companies and brokers. Their purchase threshold is relatively low, and they need to go through relevant procedures when purchasing. However, from the practical point of view, because most investors' investment concepts are relatively conservative, they often see the scene of national debt being looted in banks.