From the investment direction, bond funds mainly invest in three mainstream directions: national debt, financial debt and corporate debt. Specifically, there are local government bonds, corporate bonds, convertible bonds and central bank bills. There are also some differences between bond funds according to the different investment objects and investment proportions.
Bond funds are divided into pure debt funds and mixed debt bases according to whether they only invest in bonds.
I. Pure debt fund
Including short-term debt funds and medium-and long-term bond funds, short-term debt funds have a shorter duration, while medium-and long-term bond funds have a longer duration (duration refers to the average time for bondholders to recover all principal and interest, and the shorter the duration, the smaller the bond price fluctuation and the smaller the interest rate risk).
Second, mixed debt base.
1, primary debt base
The primary debt base allows no more than 20% of the fund assets to invest in stocks, but only in the primary market, that is, "playing new shares".
2. Subordinated debt base
The secondary debt base also allows the highest investment ratio of 20% to buy stocks, which can be purchased directly from the secondary market, just like individual stock trading.
3. Convertible bond funds
Convertible bond fund is a fund that specializes in investing in convertible bonds. Convertible bonds refer to bonds that can be converted into stocks under certain conditions. Because of this feature, convertible bonds are very strong, and bond prices are closely related to the stock market.
4. Index debt base
Index debt-based investment is a bond index, and the rise and fall of the fund is related to the trend of the index. The bonds bought by index debt base are the constituent stocks of bond index, which belong to passive funds, and the ability of fund managers is not much.
Risk levels of different debt funds
The degree of risk from left to right is: index debt base, short-term pure debt fund, medium-and long-term pure debt fund, primary debt base and secondary debt base.