Pure debt funds mean that fund investments are mainly used to purchase bonds and hold them, rather than investing in stocks and other assets.
Relatively speaking, pure debt funds have lower risks than stock funds, but investment returns are also more limited.
In pure debt funds, bonds are basically bonds issued by reputable companies and governments in the market. These bonds usually have higher credit ratings and the yields are usually more stable.
Therefore, pure debt funds are generally suitable for investors who seek stable returns and are willing to take on less risk.
Although pure debt funds carry less risk among each other, there are some different factors to be aware of, such as the bond's credit rating, maturity, and the bond's liquidity.
Therefore, when choosing a pure debt fund, investors need to carefully study the fund's composition and investment strategy to ensure that the fund meets their risk tolerance and investment objectives.
In general, pure debt funds provide a relatively stable investment method suitable for investors who pursue stable returns.
However, although the risk of this fund is smaller, investors are still required to conduct sufficient due diligence and risk assessment to ensure that the investment will have a positive impact on the long-term appreciation of their assets.