What are the investment targets of bond funds?
Bond funds refer to funds that mainly invest in bonds (accounting for more than 80%), so the rise and fall of such funds are related to the expected return of holding bonds. The expected return of bonds comes from two parts, the interest of bonds themselves and the price changes caused by changes in market interest rates.
The interest of the bond itself is relatively stable. As long as the bond issuer has not breached the contract, it can get back the principal and interest at maturity. The market interest rate usually changes according to the macro-environment and monetary policy of the country, and generally does not fluctuate too much in the short term.
Therefore, compared with partial stock funds, bond funds are less affected by stock market fluctuations, with relatively low risks and fluctuations, and their expected returns are more stable.
There are many kinds of bonds, which can be roughly divided into interest rate bonds, credit bonds and convertible bonds according to different issuers.
I. Interest rate bonds
Interest rate bonds can be understood as bonds issued by the state, which embodies the national credit and is guaranteed by the state. Generally, there is no credit risk. Bond prices are affected by market interest rates, so they are called interest rate bonds. Interest rate bonds mainly include government bonds, local government bonds, policy financial bonds and central bank bills.
Second, credit bonds.
Credit bonds are bonds issued by entities other than the government. The issuer can be various enterprises such as commercial banks, and the enterprise credit is reflected behind it. The main types of credit bonds are corporate bonds, corporate bonds, short-term financing bonds, medium-term notes, subordinated debts and financial bonds issued by non-policy banks.
Credit bonds have no national credit endorsement, so there are credit risks, and their interest rates are affected by market interest rates and the issuer's operating conditions.
Three. convertible bonds
Convertible bonds refer to bonds that can be converted into company stocks under certain conditions, and their fluctuations follow the stocks corresponding to convertible bonds, and the fluctuation range is smaller than that of stocks. Convertible bonds are both debt and stock. If you buy at a price below the face value, you can get back the principal and interest at worst. If the stock rises, the price of convertible bonds will also rise, so its expected income is said to be "guaranteed at the bottom but not at the top"
Well, the investment varieties of bond funds are so far, I hope to help you. Warm reminder, the fund is risky and needs to be cautious in investment.
Introduction reading:
Can 20 19 bond funds still invest? Look at two things specifically.