Convertible bond funds are a category of bond funds that mainly invest in convertible bonds.

Convertible bonds are essentially bonds that can be converted into shares of listed companies. Individual investors can also directly purchase convertible bonds. So what are the differences between convertible bond funds and convertible bonds?

1. Investment threshold: The face value of a convertible bond is 100, and the minimum purchase unit is 1 lot. 1 lot is 10 pieces, which means the minimum purchase price is 1,000 yuan.

The investment threshold for convertible bond funds is relatively low, generally starting at 10 yuan.

2. Investment channels: The purchase method of convertible bonds is similar to stocks. Investors need to open a securities account through a securities firm and trade within the trading system.

Convertible bond funds are over-the-counter funds and can be purchased through various channels such as fund companies, banks, and third-party sales platforms, and there is no need to open a securities account.

Therefore, in terms of investment channels, it is more convenient to purchase convertible bond funds.

3. Transaction rate: Convertible bond transactions require a certain percentage of handling fees based on the transaction amount. The default transaction fee for Shenzhen convertible bonds is one thousandth, and there is no minimum charge.

The Shanghai Stock Exchange rate is 2/10,000, but there is a minimum charge of 1 yuan.

Convertible bond funds are divided into Category A and Category C. Category A requires subscription fees and redemption fees. The subscription fee is generally less than the redemption fee after a certain period of holding. Therefore, long-term holding of Category A funds is better than Category C funds.

cheaper.

4. Investment risks Although convertible bond funds are bond funds, the funds fluctuate greatly, and most of them are medium- to high-risk funds.

Convertible bonds purchased in the primary market are purchased at par price and are covered by bond interest, so the risk is relatively low, while convertible bonds purchased in the secondary market have higher risks.

I hope the above content about the difference between convertible bond funds and convertible bonds will be helpful to everyone.

Warm reminder, financial management is risky, so investment needs to be cautious.