Regarding Southern Fund's amortized cost method debt base, the editor has made the following summary.
If there are any mistakes, you are welcome to correct them.
Overview of a debt fund is a fund with fixed-income securities as its main investment target, mainly investing in the domestic bond market.
The fund's investment strategy is to use the amortized cost method, which spreads the bond's yield to maturity over each investment period and does not trade during the holding period to obtain stable returns.
The investment targets of this fund include fixed-income securities such as treasury bonds, local government bonds, corporate bonds, and medium-term notes. These securities have high credit ratings and low risks and are suitable for conservative investors.
Investment Advantages The investment advantages of this fund are mainly reflected in the following aspects: 1. Low risk: This fund mainly invests in fixed-income securities, has a high credit rating and low risks, and is suitable for conservative investors.
2. Stable income: Using the amortized cost method to invest, you can amortize the bond's yield to maturity to obtain stable income.
3. Long-term investment: This fund does not conduct transactions during the holding period, which can better resist market fluctuations and is suitable for long-term investment.
4. Professional management: The fund is professionally managed by Southern Fund. Investors do not need to research the bond market on their own and can safely hand over their funds to professional managers for management.
Investment Risk Although this fund has lower risk, there is still a certain amount of investment risk.
The main risks include: 1. Market risk: The bond market will be affected by factors such as macroeconomics and interest rate changes, and there are certain market risks.
2. Credit risk: Although the fund mainly invests in bonds with higher credit ratings, there is still the risk of bond default.
3. Liquidity risk: There is liquidity risk in the bond market. If the fund needs to redeem a large amount, it may have a certain impact on the market.
In summary, it is a fund with fixed income securities as its main investment target. It has the advantages of low risk, stable income, long-term investment and professional management.
Investors can appropriately allocate the fund according to their own risk preferences to achieve asset preservation and appreciation.
However, it should be noted that the fund still involves investment risks such as market risk, credit risk and liquidity risk, and investors should invest cautiously based on their own circumstances.