First, the advantages of convertible bonds fund
Convertible bonds have certain requirements for investors' time and investment experience, and if convertible bond funds can find more reliable fund managers, then investment will be more worry-free, as long as they choose the right trading opportunity.
Because convertible bond funds have the characteristics of both stocks and bonds, when the market is good, the profitability of convertible bond funds is relatively strong, even exceeding that of partial stock funds.
Second, the disadvantages of convertible bond funds
The risk of convertible bond funds is higher than that of ordinary bond funds. When the market is not good, the radical convertible bond fund will fall even more than the equity fund. Therefore, it is generally not recommended to participate in the investment of convertible bond funds under the market environment of "two bears in stock and debt" and "two bears in stock and debt".
Three. Matters needing attention in purchasing convertible bond funds
1. Pay attention to the investment scope of funds.
Generally, the proportion of convertible bonds invested by convertible bonds funds is not less than 80%, most of them do not invest in the stock market, and some will participate in the subscription or issuance of new shares in the primary market, but the proportion of such investments will not exceed 20% of the fund assets.
2. Pay attention to the transaction cost of funds.
Bond funds have more or less transaction fees such as subscription fee, redemption fee and sales service fee, and different funds set different transaction rates. The transaction rate of the fund is not directly related to the expected income of the fund, so it is recommended to choose a fund product with a relatively low rate.
The above contents about the advantages and disadvantages of convertible bond funds, I hope to help you. Warm reminder, financial management is risky and investment needs to be cautious.