How to choose a fixed income fund
Faced with the "wealth effect" shown by capital preservation funds and bond funds, many investors began to be tempted.
Relevant financial planners suggest that although the capital preservation fund has shown higher returns this year, it is still recommended for those medium and long-term investors with low risk tolerance who want to obtain higher returns than bank deposits. Because the primary function of the capital preservation fund is capital preservation, followed by value-added. Buying a capital preservation fund should focus on the medium and long term, because the capital preservation fund has a lock-up period and its liquidity is far less than that of other open-end funds. This lock-up period is generally 3 years in China and even 7 years to 12 years abroad. If you redeem in advance, you will not enjoy the discount of capital preservation. In addition, the capital preservation fund generally sets a decreasing redemption rate to prevent early redemption. The earlier the redemption, the higher the redemption fee.
Financial planners suggest that in addition to the above conditions, we should also pay attention to the selection of fund managers when purchasing capital preservation funds. Although it is impossible to predict the future income of the fund only by historical performance, we can partly judge the investment operation ability of the fund manager. Therefore, when purchasing capital preservation, we should attach great importance to the screening of fund management companies and fund managers, and choose those funds with relatively stable long-term performance.
Although bond funds have also achieved 8.75% net growth this year, they are far behind the bond market. The reason why bond funds lag far behind the bond market should be because the investment ratio of stocks and convertible bonds in the first three quarters of this year is close to or exceeds 40% of the net asset value. This "double-edged sword" dragged down the net asset value of bond funds in 2005. On the other hand, the holding duration of bond funds is lower than the national debt level for a long time. In the market environment where the trend of medium and long-term bonds is stronger than that of short-term bonds, the investment income of fixed-income varieties of bond funds is also lower than the average level of the national debt market.
Some researchers believe that there will be upward momentum in the bond market next year, when the overall performance of bond funds will be good. However, some people especially emphasize that it is necessary to choose those funds that have been allocated on the partial debt-to-debt swap for proper investment. Because although the consideration cannot be obtained in the share reform, after the continuous correction of the convertible bond market in the early stage, some partial debt-to-debt swaps have certain investment value and are more suitable for investors with certain risk tolerance.