With the continuous development of economy, there are more and more types of products that can be invested. With the increasing diversification of bond types, investors need to understand the classification, differences, income and other related information of bond funds, and the most important thing is to understand its meaning. So, what does pure debt bond mean? Is pure debt bond a personal financial product?

What does pure debt bond mean?

Pure debt fund is a kind of bond, and it is a fund that specializes in investing in bonds. According to the division of the stock market, pure bond funds are called bond funds, which mainly invest in fixed-income financial instruments such as government bonds and financial bonds. Pure debt bonds are issued by enterprises and countries, but they will repay the principal and interest at maturity.

In the market, bonds have stable income and less risk, so they are also called fixed income funds because the income of the products they invest in is relatively stable. Moreover, users who enter the fund market need to understand that the income of pure debt bonds is relatively stable compared with equity funds. However, investors need to understand that pure debt funds generally do not invest in stocks.

Is pure debt bond a personal financial product?

Pure debt bonds belong to personal financial products. Pure debt financing refers to the financing of major investment bonds, and the financing income is determined by the bonds invested. Compared with stock funds, bond funds have low risks but low returns. Only by holding it for a long time can we get a relatively satisfactory return.

Generally speaking, bond funds do not charge subscription or subscription fees. However, bonds are not capital preservation products, so there is also the possibility of losses in pure debt financing, and bonds generally have relatively stable returns. Among them, there are differences between Class A and Class C of pure debt bonds. The operating rate of Class A is relatively low, but the redemption threshold is relatively high, and the investment cycle is as long as 2 years. Class C funds have no subscription fee, and the redemption threshold is usually relatively low, which is convenient for short-term operation.

In addition, pure debt-based funds are funds that only invest in the bond market. Apart from the money fund, the lowest risk is the pure debt fund. In the case of low risk, the return is relatively low.