The benchmark of fund performance is like the passing line of fund performance, which is the expected goal that the fund company wants to achieve and may achieve for the fund.

Through the performance comparison benchmark of the fund, we can know the type, investment scope and asset allocation ratio of the fund. For example, the performance benchmark of a fund is: the yield of CSI 800 index ×70%+ the yield of CSI comprehensive bond index ×30%, which shows that the investment direction of this fund covers all aspects of A-share large, medium and small-cap stocks. The proportion of stock investment is relatively high, belonging to the partial stock mixed fund.

Performance benchmark of bond funds

The performance comparison benchmarks of bond funds include China Bond Comprehensive Bond Index, China Securities Credit Bond Index and China Securities Total Bond Index, and some of them are comprehensive performance comparison benchmarks, such as the yield of China Bond Comprehensive Wealth (Gross Value) Index *90% 1 annual fixed deposit rate (after tax) * 10%.

China Bond Composite Index is an index that comprehensively reflects the price change trend of China bond market. Compared with other bond indexes, the sample bonds covered by China Bond Composite Index are the most comprehensive.

CSI Total Bond Index is a cross-market bond index compiled by CSI Index Company, which comprehensively reflects the inter-bank bond market and the bond market of Shanghai and Shenzhen Stock Exchanges. It is also the first bond index compiled and released by China Securities Index Company.

For pure debt funds, because they can only invest in bonds but not stocks, their performance comparison benchmark is usually only the bond index, such as China-Europe pure debt, and the performance comparison benchmark is the comprehensive full-price index of China Bond.

For secondary bond funds, you can invest in stocks with a certain proportion of fund assets, such as China-Europe Double Interest Bond Fund. Its performance benchmark is: the yield of China Bond Composite Index ×90%+ the yield of Shanghai and Shenzhen 300 Index × 10%.

How bond funds outperform performance benchmarks

If bond funds want to outperform the performance benchmark, the most important thing is to look at the management ability of fund managers. Mainly includes:

First, the asset allocation ability determines the allocation ratio of bonds, stocks, cash and other assets in the portfolio.

Second, the ability of industry selection, for industry selection, is mainly to decide which industry bonds to increase or decrease positions.

Third, the choice of the underlying bond, which bond to buy or which bond to sell.

Fourth, if it is an interest rate bond, it is also necessary to test the band operation ability and trading ability of the fund manager.

In addition to the ability of the fund manager, the strength of the fund company behind it is also very important. Whether the fund company has a strong credit research and credit rating team to avoid "stepping on thunder" in the investment process of bond funds. All these can effectively reduce the risk of credit default.

That's what bond funds do. I hope it helps you.