Secondary bond funds belong to bond funds, and there are several types of bond funds, with different risk levels and expected returns. According to the risk from low to high, they are pure debt fund, primary debt fund, secondary debt fund and convertible bond fund. Expected returns correspond to risks.
According to statistics, the average annualized rate of return of secondary debt base in Public Offering of Fund market can exceed 9%, but the maximum retracement level is far lower than that of various stock funds. For citizens who need to add a safety mat for their investment in turbulent cities, secondary debt base is a very good choice.
The secondary debt base mainly invests in bonds, but 20% of the positions can invest in a small amount of stocks or participate in the subscription of new shares in the primary market. The investment in stocks is flexibly allocated by the fund manager, who will decide the degree of participation in the stock market according to the changes in market conditions, but the maximum position cannot exceed 20% of the fund assets. This has formed the natural advantage of the exit control of the secondary debt base.
From the perspective of asset allocation, bonds are indispensable in the portfolio. Although it is difficult to impress us with the income, it can help us balance the market risk very effectively.
At the same time, compared with time deposits, bank wealth management and money funds, bond funds have lower thresholds and stronger liquidity, which helps to balance and stabilize the overall investment income. In the long run, bond funds have a high probability of outperforming inflation.