Bond funds play a very important balancing role in our asset allocation. Especially for prudent investors, bond funds can be regarded as fixed income investment part, and then other active stock funds can be allocated as equity investment part. Portfolio can have both offensive and defensive functions. The very popular "+"strategy is this combination mode.

Choose money fund to look at income, index fund to look at index and company, partial stock mixed fund to look at fund performance, various indicators and funds. Then, if you want to choose a suitable bond fund, how should you choose?

In order to choose a suitable bond fund, we must first know which bond funds are available.

What bond funds are there?

Pure debt fund

The first type is pure debt fund, which, as the name implies, is a fund that only invests in bonds.

Pure debt funds do not invest in stocks or participate in new shares. Therefore, among all bond funds, it has the lowest risk and the smallest fluctuation.

However, it should be noted here that convertible bonds are also bonds, so pure debt funds can invest in convertible bonds, but after the convertible bonds are converted into shares, pure debt funds will deal with these shares. Or you can directly choose not to invest in convertible bonds.

Pure debt funds can be divided into medium and long-term pure debt funds and short-term pure debt funds according to their duration.

Among them, the remaining duration of bond assets invested by medium and long-term pure debt funds is above 1 year. Generally speaking, the longer the remaining maturity of bonds, the greater the fluctuation of bond prices, and of course the higher the expected return.

The remaining duration of bond assets invested by short-term pure debt funds is within one year.

Therefore, the risk of medium and long-term pure debt funds is greater than that of short-term pure debt funds.

Main debt base

The primary debt base can participate in the subscription of new shares, and the investment scope is wider, so the income and risk coefficient of primary bonds are higher than that of pure debt funds.

Subordinated debt base

The secondary debt base can also invest in stocks on the basis of the primary debt, so the investment scope is wider, and of course the risks and benefits are higher.

How to choose the right bond fund investment?

If you want to buy the right bonds, you must know yourself and yourself. First of all, we must know our own needs and risk tolerance.

Different types of bond funds provide investors with more choices. If the risk tolerance is weak, more conservative and steady investors can choose pure bond funds. If the liquidity is high, you can also choose some ultra-short-term bond funds in the market.

Generally speaking, the bond market and the stock market are relative. If the stock market is not very prosperous and the economy is depressed, the state will adopt a loose monetary policy. At this time, the bond market will be even more popular.

or vice versa, Dallas to the auditorium

In fact, the bond fund itself is a variety with low investment risk, and the income is the same. Therefore, when investing in bond funds, investors are required to be more patient and pay more attention to the steady income of long-term investment.

I hope the above contents are helpful to you.