What is the difference between a primary debt base and a secondary debt base?
1, the investment target is different.
The investment targets of the primary debt base are financial instruments with fixed expected returns, including government bonds, financial bonds and corporate bonds. In addition to financial instruments with fixed expected returns, the secondary debt base is suitable for participating in stock trading in the secondary market.
2. The investment scope is different.
Because the primary debt base invests in pure debt, and the secondary debt base can also invest in secondary stocks, the investment scope of the secondary debt base is larger than that of the primary debt base.
3. Different risk characteristics
Due to the different investment targets and product composition characteristics, the risk of secondary debt base has increased; Generally speaking, the primary debt base is of medium and low risk, and the secondary debt base is of medium risk.
4. Different asset allocation
The primary debt base is a bond portfolio with high expected return, and it is a new stock; The secondary debt base is a combination of high expected return bonds and selected new shares to increase the expected return; In other words, the primary debt base is a combination of pure debt and new shares; The secondary debt base is a combination of pure debt, new shares and selected stocks, with different asset allocation.
In addition to the primary debt base and the secondary debt base, pure debt funds and convertible bonds funds belong to the debt base, and these kinds of risk returns are different. Investors need to choose the type of debt base according to their risk preference, and it is not easy to choose high-quality debt base. Need to check some indicators of the fund, including fund performance, fund managers and other indicators.