Fixed-income products are basically agreed before investment. If there is no credit risk, yield to maturity is expected to be known.
Among them, bond products make me very upset, and I have never known which category to classify. When investing in bonds, if you buy them at the beginning and then hold the investors who are due, then the bond products are fixed-income products for you. But if it is after the bond is listed, it is a floating income product for those who have spread trading and leveraged investment.
For the derivative bond funds of bonds, the situation is even more complicated.
Two days ago, someone asked why bonds can earn money every day, but bond funds often lose money.
To know why there is a loss, we must first know how bond funds make money.
For bond funds, there are many sources of income:
1. Capital gains
That is, the bid-ask spread, the price of bonds that have been traded in the market will rise or fall due to liquidity, changes in market interest rates and other reasons. If the fund manager buys low and sells high, he can get the price difference caused by price fluctuation. Buy high and sell low, and you will see a loss. This part of the transaction is somewhat similar to stocks.
2. Interest income
Regarding the previous thinking about whether bond products are fixed income products or floating income products, I think bonds should be fixed income products first, and then floating income products. Only when the bond matures will interest income be given to the holder at a certain interest rate.
3. Leveraged investment income
It is not uncommon for investment bonds to be leveraged. After investing in bonds, bond managers can mortgage bonds to the corresponding financial institutions to obtain capital flow, and then use the money to buy more bonds. Leveraged investment not only amplifies the benefits, but also intensifies the risks.
Stock investment income
Bond funds are 80% funds invested in bonds, and 20% funds can be invested in stocks. Some bond funds will also make a small amount of stock investment, and the stock price difference or dividend income can be used as the income of bond funds.
Then let's talk about why bond funds lose money.
To sum up, the four aspects of bond fund income mentioned above are two sources of income. The first part is fixed interest income, and the second part is the value fluctuation of bonds in the market. When the price fluctuation in the second part leads to losses, and the degree of losses is greater than the interest income in the first part, the net value of bond funds will fall.
Therefore, it can be seen that the key factor that determines the rise of bond funds is the trend of the bond market. Therefore, fund managers can correctly judge the trend of bonds, which is their trump card.
How to choose a good bond fund?
1. Know the investment destination
Before investing, you should look at which bonds you hold, and then look at the grades of these bonds, so that you can know what kind of bonds this fund invests in. Generally speaking, the higher the bond grade, the lower the bond yield, but the higher the security. Everyone can choose the right bonds to invest according to their own needs and risk preferences.
Level of inspection method:
Each bond grade and information inquiry website:
/Home/(SSE Bond Information Network)
Enter the bond code here. You can see the credit rating in the information.
2. The comprehensive rate is low
We know that there are subscription fees, redemption fees, management fees and so on. The management fees of most bond funds range from 0.5% to 1.5%. Different bond funds have different rates. Try to choose a fund with a lower rate, because our bond fund itself has a low income, so bond funds need to pay more attention to the rate than investing in stock funds. If the rate is too high, there will be little profit left.
3. Fund managers and fund companies are strong.
Select fund managers with long-term working experience, and measure their professional level through their performance in managing the same type of funds over the years. The fund companies that issue funds should not be too weak and can make correct investment decisions, which is the result of research and investigation by the whole team. Therefore, priority is given to fund companies with good past performance. You can check the basic situation of fund companies and fund managers on the website of Good Buy Fund.
4. Moderate scale and convenient operation.
The scale of bond funds should not be too large. As the saying goes, the boat is easy to turn around, and so is the bond fund. In addition, the liquidity of bonds is worse than that of stocks, and people don't buy them immediately if you want to sell them. If there is a large redemption or some unexpected events, it is not convenient to change positions.
However, it should not be too small. Too small a scale may limit the investment of fund managers. In addition, small-scale funds will have higher handling fees in order to share the expenses in all aspects.
Therefore, the scale of bond funds needs to be moderate, and 1 100 million is more appropriate.
The above are the four criteria for choosing the debt base.
When the assets reach a certain level, we need to do asset allocation to position the stability of our investment income. The relationship between stock market and bond market is a seesaw. For a lazy cancer patient, the best asset allocation is to put part of the money in the stock market and part of the money in the bond market, which can play a good asset allocation effect. As for the proportion, it depends on your own risk tolerance.