Questioner: Mr. Guo

Questioner: Galaxy Securities Beijing Guo Na

Answer: The interest rate of the recent book-entry treasury bonds is really not high, which is not very suitable for individual investors. At present, the performance benchmark of bond funds issued in the market is positioned as the after-tax interest rate of two-year time deposits (currently 2.16%), which is higher than the income of deposits or government bonds in the same period, and has advantages compared with the current money funds with declining income. Because this kind of fund mainly invests in short-term bonds, the principal is safe and the income is stable. For ordinary people to buy government bonds, there are many benefits that cannot be obtained. For example, individuals can't participate in the interbank market, the retail quota of corporate bonds is limited, and individuals can't buy them. However, investors can avoid this drawback by buying bond funds.

It should be emphasized that the bond funds that sell well in the market at present are different from those that have been issued in the past. In the past, bond funds were mainly invested in bonds, supplemented by investment in stock funds. However, the bond funds that sell well now are fixed-income types such as short-term bonds that only invest in the inter-bank bond market and do not invest in the stock market, so they are usually called "short-term debt funds". Due to the characteristics of the bond market, this kind of fund is suitable for investors with a holding period of more than 3 months.