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What does it mean to play a new fund with convertible bonds?
Convertible bond is a special fund type, which invests in the issuance of new convertible bonds. When the company's new shares are listed, if convertible bonds are issued at the same time, then such convertible bonds will also be subscribed at the initial issuance. The investment strategy of convertible bonds to create new funds is to use the characteristics of convertible bonds such as premium, high interest rate, stock price conversion and flexibility to obtain investment income different from ordinary bonds.

The investment risk of convertible bonds in the new fund is more controllable than other fund types, because convertible bonds, as a mild financial derivative, reduce the volatility of shareholders' equity and stabilize the return on investment. In addition, the share of convertible bonds in the new fund is locked in advance by the fund company, rather than oversubscribed like other closed-end funds, so there will be no problems such as overcharging.

When investing in convertible bonds to create new funds, investors should pay special attention to the historical investment records of fund companies, the professional ability of fund managers, fund management fees and investment strategies. In addition, investors should pay attention to market risk and liquidity risk, and pay more attention to diversification and risk control in fund investment to ensure asset safety. In short, investing in convertible bonds to create new funds requires a careful understanding of market information and active follow-up of your own investment in order to obtain a good return on investment.