Which is better for a pure bond fund? How to choose a pure bond fund? Why do bond funds lose money?
What is a bond index fund?
The first domestic bond index fund is the Southern CSI 50 Bond Index Securities Investment Fund, and it is also the first domestic debt base adopting LOF mode. Because of the * * * nature of the index fund, the fund is a passive index investment. Through a series of investment skills and means, the index of the heavy 50 bonds can be effectively tracked.
What are the bond index funds?
Bond index mainly has the following functions:
(1) Bond index can be used for market analysis and forecast. Investors can predict the overall trend of the future bond market by analyzing the static and real-time bond index charts.
(2) As the basis for measuring the expected annualized rate of return of the overall bond market, it is the standard for evaluating the outstanding performance of investors. Investors can choose a certain investment evaluation interval, calculate the return rate of the index within the interval, and then compare it with their own investment return level to judge the quality of investment performance. This also provides a basis for financial institutions to assess the performance of bond investment-related departments.
(3) Help investors to build an index bond portfolio. Quite a few studies show that, on the whole, the long-term return of most investors will not be higher than the expected annualized return of the market as a whole (Markowitz's market portfolio theory just illustrates this point). Bond index can help investors to build index bond portfolio, can simulate and keep an eye on the expected annualized expected return level of the bond market as a whole, reduce the cost of frequent market operations, and can also be used to avoid the risk that the expected annualized expected return of investors is lower than the expected annualized expected return of the market as a whole.
(4) Help the financial supervision department to grasp the information of the bond market in time. As an indicator of the overall price trend of the bond market, the bond index can help the financial supervision department to grasp the current market situation in a timely and accurate manner and formulate an open market operation strategy. At the same time, the bizarre prices in the market will also be clearly reflected in the index, which can help the regulatory authorities find market violations in time.
(5) Help bond issuers understand the market situation and make bond issuance plans. Issuers of all kinds of bonds can understand the current situation and history of the bond market through the bond index, and provide decision-making help for them to formulate the bond issuance period and price.