Convertible bond funds generally belong to the secondary debt base, which is more relevant to the stock market than ordinary bond funds. The expected return and withdrawal fluctuate greatly, and there is the possibility of principal loss.

What is convertible bond?

Convertible bonds are bonds that bondholders can convert into common shares of the company at an agreed price at the time of issuance. If the bondholders do not want to convert shares, they can continue to hold the bonds until the repayment period expires to collect the principal and interest, or they can be sold and realized in the circulation market.

Is it suitable for long-term holding?

Convertible bond funds invest in convertible bonds, the risk and yield are relatively low, and it is not suitable for long-term holding for radical investors who pursue high returns and high risks.

The trend of convertible bond funds is influenced by the trend of convertible bond stocks to a certain extent, that is, the rise of positive share price will lead to the rise of convertible bonds to a certain extent, thus promoting the rise of convertible bond funds, and vice versa may lead to the decline of convertible bond funds. Therefore, investors can choose to buy convertible bond funds when the shares are rising and sell convertible bond funds when the shares are falling.