Classification of bond funds:
The investment targets of domestic bond funds mainly include government bonds, financial bonds and corporate bonds. Bond funds are an important type of funds, ranking second in scale, and there are many kinds of bond funds, among which pure bond funds, first-class bond funds and second-class bond funds account for a relatively large proportion. Debt-based three musketeers? .
Pure debt fund refers to a fund that only invests in bonds, that is to say, all the investment income comes from the interest income of bonds, which can better ensure the safety of principal for investors who choose pure debt fund;
The primary bond fund mainly invests in bonds, of which less than 20% is used to buy the original shares in the primary market. Simply put, it is to buy the original shares of listed companies before the non-public offering of shares, and then sell them after listing to earn the difference profit.
Secondary bond funds also mainly invest in bonds, and the remaining 20% or less are used to trade publicly issued stocks or other financial instruments that the CSRC allows the fund to invest in.
Risks of bond funds:
Generally speaking, the risk of pure bond funds is the smallest, followed by first-class bonds, and the risk of second-class bond funds is relatively large. The bonds invested by bond funds are fixed-income securities, and the coupon rate is fixed, so the income of bond funds will be negatively correlated with the market interest rate. When the market interest rate increases, the attractiveness of bond funds will decrease, and the income will also decrease, and vice versa.
In addition, because bonds have fixed income, the principal can be returned on the specified date, and the risk of bond funds is relatively small and the income is relatively stable. Compared with simply investing in bonds, the transfer and redemption of bond funds are not limited by time and have more advantages in liquidity. Generally speaking, bond funds are less risky, but their returns are relatively meager. Only when they invest more money and hold it for a long time can they get a relatively satisfactory return. Therefore, bond funds are more suitable for investors who are unwilling to take too many risks to seek stable returns in the current period.