In recent years, the investment income of bank deposits and money funds is not ideal, and the annualized income of various money funds, including Yu 'ebao and Bitong, has fallen to 2% or even below. The era of low interest rate has brought us such a difficult problem of asset allocation: with the change of financial market, our asset allocation should be adjusted accordingly. Appropriately reducing the holding ratio of cash assets also means seeking more suitable investment targets. Many investors will think of allocating pure debt funds to improve financial income. What are the advantages of allocating pure debt funds? The following small series details the four reasons for buying a pure debt fund.

Low retracement and low risk

Pure debt fund is a low-risk fund. Compared with volatile stock funds, pure debt funds are more suitable for stable investors and occupy a place in low-risk financial management of asset allocation. Ordinary bond funds invest more than 80% of their funds in bonds, while pure debt funds, as the name implies, are funds that invest in bonds exclusively, and their risks are the lowest among all debt bases. Low risk and low retracement is the first advantage of pure debt funds.

Good liquidity and fixed income

Pure debt funds mainly invest in fixed-income financial instruments such as treasury bonds and financial bonds, and do not participate in any form of stock assets investment, which is less affected by market fluctuations and has a stable net value. Pure debt fund is the representative of fixed income wealth management products. The income is higher than monetary wealth management, and the liquidity is good, which can meet the needs of investors for short-term wealth management.

low cost

Pure debt funds do not charge subscription or subscription fees. Compared with other types of debt bases, the redemption rate of pure debt funds is also very low. The relatively low investment cost of pure debt funds is also one of the reasons why they are welcomed by investors.

Reverse investment

The yield of bond funds changes inversely with the market interest rate, so low market interest rate is beneficial to pure debt funds. When the income from investing in the money market is not good, investing in pure debt funds can get better income.

In short, as long as you are optimistic about the future of the bond market, pure debt funds are the most direct income. Looking at the whole fund market, apart from money funds, only pure debt funds can maintain long-term stable positive returns. For small partners who want to increase their assets through compound interest effect, pure debt fund is the most important financial product. Financial management is risky. Although pure debt funds are low-risk financial management, they should also be combined with market conditions and their own actual situation when purchasing.