In short, convertible bonds are special bonds issued by listed companies that can be converted into shares of the company. The bond sets the price at which the shares will be converted at the time of issue. Holders can convert convertible bonds into shares, and at the same time, they can hold bonds to repay the principal at maturity and earn interest. The value of convertible bonds is equal to the basic value of ordinary bonds plus the value of stock options, and it is a mixed bond product with both debt and stock.
Specifically, the suitable investment targets of Huaan convertible bond fund can be summarized into several categories: first, investors who are unwilling to take higher investment risks and do not want to miss the rising income of the stock market; Second, investors who want to achieve stable income through balanced asset allocation.