Bonds are creditor's rights and debt certificates issued to investors when the government, financial institutions, industrial and commercial enterprises and other institutions directly borrow money from the society to raise funds, and promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions.
If it is for asset allocation, then choose bond funds from the following aspects.
1. Select pure debt fund or tier 1 debt base.
The withdrawal amount of pure debt fund or primary debt base is small, because there is no stock position in the secondary market, so it is not affected by stock market fluctuations. It can reduce the risk of portfolio fluctuation.
2. Choose a fund manager
Fund managers are very important in actively managed funds. Fund managers play an inestimable role in the direction and decision-making of future fund investment, including how to avoid or reduce credit risk and interest rate risk through various means.
In addition, you should also pay attention to the resume of the fund manager. If the manager has been in charge of stock funds before, then he is in charge of bond funds for the first time, then you need to be cautious. After all, there are many differences in different fund transactions, so the choice of debt base depends on the stability and performance of fund managers and what types of funds have been managed before.
3. Capital investment
Want to know whether the fund invests in global high-yield bonds or bonds with high credit rating? In fact, bonds are classified by credit rating, with high credit rating, low default risk and lower interest rate; Poor credit rating, high default risk and high interest rate. Pay attention to the distinction.
4. Speed
If you choose a pure debt fund or a primary debt base, you need to consider the level of the rate, and pay attention to the subscription fee, redemption fee, custody fee, management fee and sales service fee in order not to let the excessive rate reduce your actual income.
5. Fund size
The size of the fund will affect the strategy of the fund manager. Not all enterprises have financing needs, and some enterprises that need financing have poor efficiency and limited space for fund screening.
A good enterprise, with high credit and high interest rate, which institution will choose to sell after buying? After the scale is large, money can't buy good products, and it won't help to improve the rate of return. Moreover, because bonds are not traded on a daily basis, the turnover rate is actually very low and there are not many trading opportunities. Although the fund is small in scale, when the market interest rate changes, the boat is easy to turn around, but it will also bring some hidden losses. For example, in the inter-bank bond market, the negotiated yield is accurate to four decimal places. Due to the large volume of transactions, even a little change in the four decimal places in a transaction may be millions of profits and losses. Therefore, it is not good for bond funds to be too big or too small.
6. Do you choose an institutional position?
For pure debt funds, the income gap between two funds with different returns will not be as big as that of equity funds or hybrid funds, but whether the holder structure has institutional participation or not. On the one hand, institutions make use of their own investment and research advantages to be more sensitive to the market. With the landing of public offering FOF funds, some excellent bond funds will stand out;
On the other hand, once an institution initiates redemption, it is often a large amount, and even a huge redemption may be initiated, which will lead to the reduction of the size of bond funds. If the fund manager wants to sell the bonds that have not expired at this time at a loss, the net value will fluctuate greatly, and the net value of the fund will remain four decimal places. Due to rounding, if the fund pays less money to the redeemed institution, the income will be cheaper for other investors. If it pays more to the redeemed institution, then other investments that have not been redeemed.
At this stage, there are many selected stock fund products on the platform of Du Xiaoman Wealth Management APP (formerly Baidu Wealth Management), which are suitable for investors who can take certain risks and pursue the preservation and appreciation of wealth.
Detailed product information can be searched for "Du Xiaoman Financial APP" in the application market. I hope the above information can help you. Investment is risky and financial management needs to be cautious. Please choose a product that suits your risk preference and is familiar to you.