There are many wealth management products on the market, but for inexperienced investors, it is easy to confuse the names of wealth management products. Some foundations have the words "fixed investment debt", so what does it mean?

What do you mean by fixed debt?

Fixed debt is a bond fund that is open for a specified period. Funds are divided into open and closed types. Open-end funds can always be purchased and redeemed, but closed-end funds can't. Term bonds are closed for a long time and will be opened regularly, and can be purchased and redeemed during the opening period. Bond fund is a fund with bond-based assets.

For fund managers, closed-end funds are beneficial to their long-term asset allocation, which can maximize the use of funds without allocating too much cash to meet the redemption requirements of the market, but this is inflexible for investors. Fixed investment balances the needs of fund managers and investors.

As a bond fund, the risk of fixed bonds is naturally lower than that of equity funds and hybrid funds, but attention should be paid to interest rate risk and credit risk when investing.