How do novices choose bond funds?
1 Define the target requirements. First of all, when buying any investment products, you should be clear about your goals and risk tolerance, such as pursuing stability and low risk or pursuing relatively high returns. We all know that different types of debt-based risks are different, and high-risk returns are higher, while low-risk returns are relatively low. Regarding how to choose bond funds, the risk-return level of common debt bases is from small to large: pure debt funds.
At this time, from the perspective of asset allocation, you should think about the positioning of buying bond funds and the proportion of bond funds in your total investment, and then choose the debt-based type that meets the target. For example, if you want to use half of your savings for asset allocation with low risk and stable income, then choose a pure debt fund or a primary debt base; If you invest with idle funds and want to obtain relatively stable high returns, secondary debt base and convertible bond base are more suitable for you.
2 Look at the fund company. Compared with hybrid funds and equity funds, fund companies have a greater impact on debt-based funds. As the saying goes, fund companies with bank background have inherent shareholder advantages and a better debt base, because bonds are traded in the interbank market, so that fund companies can get lower-cost bonds and have more resources. In addition, fund companies with large brokerage backgrounds will also have advantages. Of course, some large fund companies without bank background also have many high-quality bond funds. So how to choose a bond fund depends on the fund company.
3 look at the performance. Looking at performance is a classic routine to judge the quality of a fund, and bond funds are no exception. Historical achievements have very important reference value, and the "4433 rule" can be used. The first "4" represents the selection of funds with one-year performance ranking before the same type of products 1/4; The second "4" represents the selection of funds whose performance has been ranked before the same type of products for two years, three years, five years and this year 1/4; The third "3" represents the selection of the fund whose performance in the past six months ranks before similar products 1/3; The fourth "3" represents the selection of funds with the performance ranking of 1/3 in the first three months.
4 look at the investment target. If you want to know how to choose a bond fund through the investment target, you must first understand the investment target of the bond fund. The main investment targets of bond funds include government bonds, financial bonds, corporate bonds, central bank bills and convertible bonds. The returns and risks of these bond varieties vary greatly. In addition, some funds hold stocks, and the allocation ratio of funds is different, which directly affects the risk of funds. Among them, convertible bonds and stocks have the greatest income risk, while national debt is the most stable.
5 the redemption rate should be as low as possible. It's best not to, but not too high, because bond funds can't make much, and if they don't count here, they can't make much. Don't think about who grade a is sold to. People's organizations buy more, which is a fixed fee, and certainly not a percentage. In addition, we should pay attention to the fact that some fund companies have a low-fee model in Class A and a high-fee model in Class B, and wait until we see it.
Generally speaking, the choice of bond funds is mainly based on the above five points. If you do these five steps well, you will not be afraid of not choosing a good fund.