Fixed-income pure debt fund is a kind of bond, and it is a fund that specializes in investing in bonds. Bonds are issued by enterprises and countries, and they all have a characteristic: they have a certain term, and the principal and interest are returned at maturity, and the interest is higher than that of bank deposits. Therefore, the risk of buying a pure debt fund is not great, and its biggest risk is that it cannot keep up with the pace of inflation.

concept

Bond fund is a kind of securities investment fund with bonds as its investment object. According to the regulations, when more than 80% of the fund's assets are invested in bonds, it is called a bond fund. In China, bond funds mainly invest in government bonds, financial bonds and corporate bonds.

classify

The main types of bond funds are pure bond funds, primary bond funds and secondary bond funds. Pure debt fund refers to a fund that only invests in bonds, which means that all investment income comes from the interest income of bonds. For investors who choose pure debt funds, the security of principal can be better guaranteed.

Tier 1 bond funds mainly invest in bonds, less than 20% of which are used to buy original shares in the primary market. Simply put, it is to buy the original shares before the public offering of shares by listed companies, and sell them after listing to earn the difference profit.

Secondary bond funds also mainly invest in bonds, and the remaining 20% or less are used to trade publicly issued stocks or other financial instruments that the CSRC allows the fund to invest in.

Under normal circumstances, pure bond funds have the smallest risk, followed by tier-one bond funds, and tier-two bond funds have relatively greater risk.

trait

Bonds invested by bond funds are fixed-income securities, and coupon rate is fixed. Therefore, the income of bond funds will be negatively correlated with the market interest rate. When the market interest rate increases, the attraction of bond funds is relatively reduced and the income is reduced. On the contrary, it will rise.

In addition, because bonds have fixed income, the principal can be returned on the specified date, and the risk of bond funds is relatively small and the income is relatively stable.

Compared with simply investing in bonds, the transfer and redemption of bond funds are not limited by time and have more advantages in liquidity.

suggestion

Generally speaking, the risk of bond funds is small, but the income is relatively meager. Only by investing more money and holding it for a long time can we get a relatively satisfactory return. Therefore, bond funds are more suitable for investors who are unwilling to take too many risks and seek stable returns in the current period.