The investment risk of 1 is different. As the maturity date of a single bond approaches, the interest rate risk will decrease. There is no clear maturity date for the debt base, and the risk assumed depends on the average maturity date of the bonds held. The average maturity of the debt base is relatively fixed, and the interest rate risk of the debt base will be at the same level. From the perspective of credit risk, the credit risk of bonds is centralized, and the debt base is diversified to directly face and concentrate risks.
2 income is different. A single bond has a fixed maturity date and a fixed interest rate, and then the yield can be calculated according to the purchase price and cash flow. Debt base is a combination of different bonds, and investors will get regular returns, but the returns are high or low, so it will be difficult to calculate the yield.
3 The due date is different.
The maturity date of bonds is fixed, and the debt base is a group of bonds with different maturity dates, so the maturity date cannot be defined.
4 ownership relations are different.
Bond is a creditor-debtor relationship, and debt base is a trust relationship between investors and fund managers.
Bond funds, also known as bond funds, refer to funds that specialize in investing in bonds. By concentrating the funds of many investors, we can make portfolio investment in bonds and seek relatively stable returns.
In China, bond funds mainly invest in government bonds, financial bonds and corporate bonds.
Introduction to the characteristics of bond funds
superiority
Ordinary investors can easily participate in the investment of inter-bank bonds, corporate bonds, convertible bonds and other products. These products have various inconvenient restrictions on small funds, and buying bond funds can break through this restriction.
(2) When the stock market is in a downturn, the income of bond funds is still very stable and is not affected by market fluctuations. Because the product income invested by bond funds is very stable, the corresponding fund income is also very stable. Of course, this also determines that its income is subject to the interest rate of bonds and will not be too high. The annual interest rate of corporate bonds is around 4.5%, and the annual rate of return can be guaranteed to be between 3.3% and 3.5% after deducting the operating expenses of the fund.
disadvantaged
(1) Only when it is held for a long time can it obtain a relatively satisfactory return.
(2) When the stock market skyrocketed, the income remained stable at the average level, which was lower than that of equity funds. When the bond market fluctuates, there is even the risk of loss.
Bonds are securities issued by issuers to raise funds. They pay a certain percentage of interest at the agreed time and repay the principal at maturity. Its essence is the proof of debt, which has legal effect. Issuers are usually governments, enterprises, banks, etc. Because government bonds are guaranteed by government taxes, the risks are minimal, but the benefits are minimal. Corporate bonds are the most risky and the returns are correspondingly high. There is a creditor-debtor relationship between bond buyers or investors and issuers. Bond issuers are debtors and investors (bond buyers) are creditors.
Bond funds and bonds are securities, which have the characteristics of profitability, liquidity, risk and maturity. Their investments are all securities investments.