Funds are already a very popular investment product. Funds can be divided into many categories according to different operation modes and investment targets, among which convertible bonds are one. These funds mainly invest in convertible bonds. So what are the advantages and disadvantages of convertible bond funds?

1. Advantages of convertible bond funds

Convertible bonds have certain requirements on investors' time and investment experience, and if convertible bond funds can find a more reliable fund manager, then the investment will be more worry-free, just choose the right buying and selling time.

because convertible bond funds have both characteristics of stock and debt, when the market is good, the profitability of convertible bond funds is relatively strong, even exceeding that of partial stock funds.

II. Disadvantages of convertible bond funds

The risk of convertible bond funds is higher than that of ordinary bond funds. When the market is not good, radical convertible bond funds fall even more sharply than equity funds. Therefore, it is generally not recommended to participate in the investment of convertible bonds funds under the market environment of "two bears with stocks and debts" and "two bears with stocks and debts".

III. Precautions for purchasing convertible bonds funds

1. Pay attention to the investment scope of funds

Generally, convertible bonds funds invest in convertible bonds at a rate of not less than 8%, and most of them do not invest in the stock market, and some will participate in the subscription or issuance of new shares in the primary market, but the proportion of such investments will not exceed 2% of the fund assets.

2. Pay attention to the transaction costs of funds

Bond funds have transaction costs such as subscription fees, redemption fees and sales service fees to a greater or lesser extent, and the setting of transaction rates by different funds is quite different. The transaction rate of the fund is not directly related to the expected income of the fund, so it is suggested to choose a fund product with a relatively low rate.

The above contents about the advantages and disadvantages of convertible bond funds, I hope to help you. Warm reminder, financial management is risky and investment needs to be cautious.