First, the advantages of pure debt funds
1, with low risk.
Different types of funds have different investment targets, such as bonds and stocks. Pure debt fund means that the investment direction of fund managers is all bonds, such as national debt and corporate bonds.
The risk of bonds is relatively low, so the risk of bond funds is also lower than that of equity funds, hybrid funds and other fund categories.
For low-risk fund products, the overall fluctuation is small, so the professional requirements for investors are low, and there is basically no need to pay too much attention to the timing of fund buying.
2. The investment threshold is low.
The threshold of pure debt fund is generally 10 yuan, and small idle funds of investors can be transferred to pure debt fund at any time.
3. Fixed investment can be made.
Although the rise and fall of pure debt funds are small, if investors have the demand for compulsory savings, they can also set the investment of pure debt funds as fixed investment, and it is a good way to save money by taking out a sum of money from their wages regularly every month.
Second, the shortcomings of pure debt funds.
The disadvantage of pure debt funds is mainly the low yield. The expected rate of return of pure debt funds is about 4% on average, which is slightly higher than that of money funds, but also lower than other bond funds and equity funds.