The other is a hybrid secondary bond fund, which can invest in stocks with a proportion of no more than 20% outside bonds. When the stock market is good, this 20% allocation may bring relatively high returns, but when the stock market is depressed, the secondary debt base will fluctuate greatly and even lose money. The average annualized rate of return of such funds is above 6%, and the rate of return can exceed 10% in good years of the stock market.
If you are a conservative investor, you can allocate a single secondary bond fund, which can be advanced or retired. If you choose a pure debt fund, you can choose one that has been established for a long time, has a relatively high comprehensive income ranking, and has a long management cycle for fund managers.
Extended data:
Where does the income of creditor's rights come from?
Let's look at the yield of bonds first. The income of bonds mainly comes from two parts, one is the coupon income, which is usually determined when bonds are issued, so this part of the income is absolutely positive, and the other part is the income brought about by the price rise and fall of bonds in the secondary market. This part is similar to stocks, which may make money or lose money. The operating logic of bond funds and equity funds is very similar. In other words, we pay a fund manager to help you choose better bond assets in the market and earn income through buying and selling. Compared with stocks, bonds usually have a fixed interest rate, so they are not directly linked to the company's performance, and the income is relatively stable and the risk is relatively small. Moreover, when the enterprise goes bankrupt, the creditor's right to the remaining assets of the enterprise takes precedence over the stock holder, which relatively protects the interests of the creditor and the bond defaults.