At present, the funds we often come into contact with are generally pure debt funds, mainly investing in bonds, but in fact there are also primary debt bases and secondary debt bases. Many people don't know much about this, so what's the difference between the primary debt base and the secondary debt base? Let's take a look.

What is the difference between a primary debt base and a secondary debt base?

Pure debt fund, primary debt base and secondary debt base are common bond funds, and their differences lie in the investment scope and risk-return characteristics. Details are as follows:

1. Pure debt fund: Pure debt fund refers to a bond fund that mainly invests in fixed-income wealth management products. They have low risks and relatively stable returns, and are suitable for investors who pursue steady returns.

2. Tier 1 debt base: Tier 1 debt base refers to bond funds that can participate in stock investment, but its investment scope is limited to fixed-income wealth management products, so the risk is relatively low.

3. Secondary debt base: Secondary debt base refers to bond funds that can invest in equity assets such as dry stocks and convertible bonds. Their investment scope is wider, so the risk is relatively high, which is suitable for investors who pursue high risk and high return.

In addition, in addition to the above three bond funds, there is also a convertible bond fund, which can invest in bonds and stocks at the same time and has converted shares. The risk-return characteristics of convertible bond funds are between pure debt funds and secondary debt bases.

In short, different bond funds are suitable for different investors and need to be selected according to their own risk tolerance and investment objectives.