Bonds, commonly known as IOUs, are called IOUs at the low end, bonds at the high end, and RMB * * * * at the top, which is a kind of certificate to pay interest on time and repay the principal at maturity. I share the following related contents with you, hoping to help you.

What's the difference between bonds and bond funds? Bonds?

Bonds, commonly known as IOUs, are called IOUs at the low end, bonds at the high end, and RMB * * * * at the top, which is a kind of certificate to pay interest on time and repay the principal at maturity. There are many classification methods, here only interest rate bonds and credit bonds are mentioned. Interest rate bonds refer to low-risk financial bonds, central bank bills and national debt. Credit bonds are bonds issued by relying on the reputation of enterprises, which are simply divided into urban investment bonds and industrial bonds. Urban investment bond is a local financing platform with a background of * * * to raise funds to support local construction, and industrial bonds are used for industrial production projects.

The domestic bond market is relatively complex, with multiple heads in charge, and it feels like a big plate of water. Among them, the inter-bank market is supervised by the China Banking Regulatory Commission, the exchange market is supervised by the China Securities Regulatory Commission and the central bank, and there are positive and reverse repurchase markets, and corporate bonds are supervised by the National Development and Reform Commission.

Bond income comes from two aspects, coupon income * * * interest, only national debt tax exemption * * * and capital gain * * * bid-ask spread * * *. But when discussing the income, we usually use the rate of return as an indicator. For example, when people say that the monthly interest rate is one point, it means very close. The rate of return mentioned here refers to yield to maturity, which needs to be strictly distinguished from coupon rate. The relationship between yield and price is that the higher the yield, the cheaper the price.

Buying and selling bonds is simple. The total amount of savings bonds is small, but the yield is high. It is suspected that the Ministry of Finance can buy it at the bank counter after posting it. Corporate bonds can only be traded by opening a securities account, and the handling fee is low. Or software for stock trading.

Let's talk about the risk of yield first. What we are most concerned about is credit risk, that is, whether we can pay back the money. There is no credit risk in national debt, the fundamental reason is that the state can print money to pay back the money. What about local enterprises and their financing platforms, giant central enterprises and other relatively weak enterprises? Compared with the mature European and American bond markets, the domestic public bond market is relatively strict in access and supervision, so there have been few defaults in the past 30 years, which is different from the junk bonds listed in mature markets. This year, the domestic bond market defaulted for the first time, which was divided into high-grade bonds and low-grade bonds. A simple investment strategy of ordinary investors is "hold to maturity", and the yield of high-grade credit bonds is still very attractive to those who prefer low risk.

Another major risk is interest rate risk. When the yield rises sharply, the bond price falls rapidly. At this time, if you want to sell bonds in advance, you need to bear the investment loss.

bond funds

Bond fund, as its name implies, is a fund that mainly invests in bonds and holds more than 80%. Can be divided into pure debt base, the primary debt base can be used for new shares, and the secondary debt base can be directly invested in the stock market and convertible bond funds. In addition, from the perspective of asset allocation, buy pure debt.

Compared with direct investment in bonds, individual investors are advised to buy bond funds. There are three reasons:

1. liquidity. Individual investors can only buy and sell bonds through the exchange market, and their liquidity is poor. In other words, when they need money badly, the bonds on hand may not sell at a fair price, which hurts people. In fact, most bond transactions are completed in the interbank market, which is the stage for institutions. In other words, the debt base can buy bond varieties that ordinary investors can't buy.

2. Professionalism. There is a difference between a good enterprise in the bond market and a good enterprise in the stock market. The stock market attaches importance to growth and has room for imagination, while a good enterprise in the bond market is an enterprise with stable operating performance and sufficient capital flow, which requires a certain ability to analyze corporate financial statements, which ordinary people do not have and do not need to learn. The understanding and grasp of macroeconomic implementation is still left to fund managers.

3. profitability. In addition to macro factors such as policies, the debt base did not perform well in some years * * * For example, in the second half of 13, the bond market was generally depressed and many debt bases suffered losses. In most years, positive returns can be expected, because most of them are coupon returns. According to the statistics of Zhihu user Zheng Runze, from the establishment of all tier-one debt bases to the first quarter 14, 2/3 of the annualized average income of debt bases outperformed the fixed deposit, which implies that investors have no timing ability at all and can only follow it from beginning to end.

Many bonds will also be classified into Class A, Class B and Class C, which is actually the difference between front-end expenses, back-end expenses and sales service fees. Investors should determine according to their investment period. If the period is not long, class C is more attractive. In addition, there are general expenses such as management fees and custody fees. ?