What is the difference between convertible bond funds and bond funds?
1 Different target: convertible bond fund investment is different from convertible bonds. Convertible bonds can not only repay the principal and interest of ordinary bonds, but also be converted into stocks during the conversion period, and can also be sold in the secondary market to obtain income.
2 Risk and return are different: convertible bonds can be traded in the secondary market, and the price will fluctuate with the underlying stock, with great potential fluctuation, while the fluctuation of ordinary bonds is relatively small, so the fund risk and return of convertible bonds are higher than that of ordinary bond funds.
3 Different numbers: In Public Offering of Fund market, the number of convertible bond funds is less than that of ordinary bond funds.
In fact, most convertible bond funds do not allocate all their assets to convertible bonds. In order to ensure their convertible bond investment style, most of them will limit their investment positions. Taking Changxin Convertible Bonds as an example, the fund contract stipulates that the proportion of investment in fixed-income assets is not less than 80% of the fund assets, and the proportion of investment in convertible bonds is not less than 80% of fixed-income assets.