The risk of pure debt fund is second only to the money fund that mainly invests in bonds, and it is more suitable for investors who can't afford big risks. So do you know that pure debt-based funds are really worth buying? The following small series will answer your question.
Is pure debt fund really worth buying?
Pure debt fund is a fund with fixed-income bonds as its main investment target, which mainly invests in the bond market and pursues relatively stable returns. Pure debt funds are usually suitable for investors with low risk appetite, or investors who want to stabilize their portfolios by investing in bonds.
The investment strategy of pure debt funds is mainly bonds, so its risk is relatively low compared with other stock funds or hybrid funds. Buying a pure debt fund may have the following advantages:
Relatively stable income: As pure debt funds mainly invest in the bond market, their income is relatively stable, and they usually pay interest at a fixed interest rate or a floating interest rate, which can provide a certain return on income.
Low risk: compared with assets such as stocks, the risk of bonds is more controllable. The investment portfolio of pure debt funds is mainly bonds, with relatively low volatility and risk.
Diversified portfolio: Pure debt funds provide investors with diversified bond investment opportunities, and can invest in bonds of different types and issuers, thus improving the diversity and risk dispersion of the portfolio.
Pure debt funds also have some precautions:
Interest rate risk: the bond market is greatly affected by the change of interest rate, and the increase of market interest rate may lead to the decline of bond price. Investing in pure debt funds requires understanding the bond market and interest rate trends and coping with interest rate risks.
Credit risk: Bonds invested by pure debt funds may have the risk of issuer's credit default. Investors need to evaluate the credit quality of bonds and choose bonds with lower credit risk.
Fund expenses: Investment in pure debt funds needs to consider fund management expenses and sales expenses. Investors should compare the cost levels of different funds and choose the pure debt fund that suits them.
How to buy pure debt funds to make money?
Generally speaking, if you buy a pure debt fund, you must choose a good pure debt fund, and the possibility of making money will be greater. First, choose a good fund manager, because funds are managed by fund managers, so choose a good fund manager.
If a new fund manager is likely to make mistakes due to lack of experience, but if he is a fund manager who has worked for more than five years, his relative experience is a little more than that of a new fund manager.
However, it does not mean that we can only look at the years of employment, because some fund managers say that they have worked in this industry for a long time, but because their ability to manage funds is not good, the fund return rate may be relatively low. Therefore, when choosing a pure debt fund, it also depends on whether the fund manager's rate of return on employment and the ability to manage funds are strong. When choosing, priority should be given to fund managers with strong management ability.
Generally speaking, the withdrawal of pure debt funds is relatively small, and it can be kept relatively small when the market fluctuates greatly. Therefore, when choosing a pure debt fund, it depends on what is the focus of the pure debt fund's position, whether it has prospects, etc., followed by the fund size, past performance, Morningstar rating, fund net value, establishment date and so on.
Is pure debt fund suitable for long-term holding?
Pure debt funds are suitable for long-term holding. Pure debt funds are funds that invest in bonds but not in the stock market, so the risk of pure debt funds is relatively small, and its risk is limited to money funds. Therefore, pure debt funds are more suitable for long-term holding, with low risk, no need to stare at them often, and more worry-free.
Only pure debt funds are also risky, so when choosing pure debt funds, you need to choose a good pure debt fund, which is more suitable for long-term holding. If you choose a bad pure debt fund, it is not suitable for long-term holding. Therefore, when choosing a pure debt fund, you can refer to the above methods of choosing a pure debt fund.
How much can you earn a month by buying a fund for 30 thousand
There is no correct answer to this question, unless the rate of return of the fund can be known in advance. Of course, no one can predict the change of fund return in advance. If you have this ability, you can invest in the great god and lie down to make money.
The profit of the fund is mainly determined by the rate of return of the fund. After a month, the higher the rate of return, the more money you earn, the lower the rate of return, and the less money you earn. However, it must be clear that funds also have certain risks. You can't just think about making money, but you will also lose money. When the fund's rate of return is negative, then we will have a loss. The greater the decline of the fund, the higher the proportion of our losses.