Different investment targets: Tier 1 bonds participate in the investment of new shares in the primary market in addition to fixed-income financial instruments; In addition to fixed-income financial instruments, secondary bonds can properly participate in stock trading in the secondary market and also participate in new stock investment in the primary market.

2, the product content is different

The primary bonds are pure bonds+new shares, and the secondary bonds are pure bonds+new shares+selected stocks.

3. Different concepts

Primary bond refers to a non-pure bond fund that invests in the primary stock market, and it is a bond fund that mainly invests in bonds and does not participate in the secondary stock market. Secondary bonds are bond funds. Besides financial instruments with fixed expected annualized returns, they also participate in stock trading in the secondary market and investment in new shares in the primary market.

4. Risks and benefits are different.

The risk of primary debt is higher than that of pure debt base and lower than that of secondary debt; The expected annualized expected return of primary bonds is higher than that of pure bonds and lower than that of secondary bonds.

5. Different definitions

Tier 1 debt base refers to open-end funds that invest in fixed-income financial instruments, including government bonds, financial bonds, corporate bonds (including convertible bonds), repurchase and other fixed-income financial instruments that China Securities Regulatory Commission allows funds to invest in.

Secondary debt refers to a bond fund with low risk, which invests in the secondary market and has higher risk and return than the primary debt base. In addition to participating in fixed-income financial instruments, the secondary debt base will also participate in bond funds that subscribe for stocks in the secondary market and new shares in the primary market.