The main features of convertible bond funds include:
1. investment scope: mainly invest in convertible bonds, but you can also invest in ordinary bonds, stocks or other financial instruments to diversify your portfolio.
2. Risks and benefits: The risks and benefits of convertible bond funds are between equity funds and ordinary bond funds. Compared with ordinary bond funds, convertible bond funds are more affected by stock market fluctuations and have higher potential returns. Compared with stock funds, convertible bond funds are less risky, because even if the stock price falls, investors can still hold bonds until maturity and get the repayment of principal and interest.
3. Investment strategy: Convertible bond funds can adopt various investment strategies, such as buy-and-hold strategy, credit strategy and stock conversion strategy. Buying and holding strategy refers to holding convertible bonds until maturity to obtain stable interest income; Credit strategy refers to choosing convertible bonds with higher credit rating for investment by analyzing the issuer's credit status; The conversion strategy refers to the conversion of convertible bonds into stocks when the stock market rises, in order to obtain higher return on investment.
4. Fees: Convertible bond funds usually charge a certain management fee and custody fee, and the specific rate varies from fund to fund. Before investing, investors need to carefully understand the cost structure of the fund in order to make wise investment decisions.
Generally speaking, convertible bond fund is an investment tool suitable for investors who pursue medium risk and medium income. Before investing, investors need to know their risk tolerance and investment objectives, and choose the right fund to invest.