People pay more and more attention to fixed income funds. Fixed-income fund is a relatively professional word. Below, Bian Xiao has compiled a more grounded method to help you understand fixed income funds.

1. What is a fixed income fund?

Fixed-income fund is a fund that obtains shares of listed companies by participating in non-public offering, that is, it mainly participates in fixed-income projects. Generally speaking, it means that stocks can be discounted in the fixed income market. For example, A shares 1 yuan, fixed income fund 0.8 yuan can buy A shares.

Second, the advantages of fixed-income funds

1. The fixed price is lower than the market price, generally 20% off. That is, buying stocks at a discount.

2. Fixed shares are generally good, often involving asset restructuring, acquisitions and so on.

3. Expected annualized expected return of fixed increase = issue discount+expected annualized expected return of stock growth+expected annualized expected return of market fluctuation (this formula should be well remembered).

You should find from this formula that the most important thing is whether the market will rise in the future.

Since the fixed general lock-up period is at least one year, it is necessary to bet on the market trend in the coming year. Discounting is useless if the market falls.

Third, increase the risk of the fund.

1. The fixed-income fund has a closed period, and no matter whether it goes up or down, it cannot stop loss during the closed period.

2. The fixed-income projects are limited, and the risks cannot be limited and dispersed.