What does the fixed-income fund mean?
Fixed-income fund, as its name implies, is a fund that obtains shares of listed companies by participating in non-public offering. This kind of fund can help the largest number of retail investors to participate in the expanding fixed income market and strive to achieve the expected annualized expected income beyond expectations. There are two sources of expected annualized expected income: first, the price of participating in the fixed increase is discounted from the market price, generally around 20%; On the other hand, it is the choice of fixed shares. After all, the fixed increase often involves major changes in the fundamentals of listed companies, such as asset restructuring and acquisition. Generally speaking, it is helpful to improve the fundamentals and future profit prospects of listed companies. As a result, many institutions with fixed professional investment have emerged, and thus they have made huge profits.
The existing fixed income funds all operate in the form of hybrid funds, and all of them have a certain closed period. Listing and trading within the closed period, and subscription and redemption are not open. Investors can only buy and sell with stock accounts. Please note that off-site channels such as bank brokers are not provided.
Advantages of fund appreciation:
The biggest advantage of fixed-income funds is that the cost of acquiring shares is lower than the market price, so the price of non-public offering is often lower than the market price by 20% or even 30%. Compared with buying and holding in the secondary market, participating in the fixed-income fund obviously gains more profit space.
Looking at its special risks, the most important risk faced by the fixed-income fund is that the fundamentals of listed companies or the stock market environment have undergone major adverse changes during the lock-up period, and it is impossible to achieve stop loss. In addition, the fixed-income projects in which the fixed-income fund participates are limited after all, and it is difficult to avoid systemic risks in the market.