What is the relationship between fixed income funds and secondary debt funds? Is it necessary to buy secondary debt funds? Fixed-income funds actually refer to funds with an investment strategy, and secondary bond funds are a type of fixed-income funds. The secondary debt base can be invested in both stocks and bonds. It has both offensive and defensive capabilities and can be called a safe haven in a volatile market. Secondary bond funds are bond funds. There are several categories of bond funds, and their risk levels and expected return levels are also different. From low to high risk, they are pure debt funds, primary debt funds, secondary debt funds, and renewable funds. Convertible Debt Fund. , the level of expected return corresponds to the risk. Judging from statistics, the average annualized return rate of secondary debt funds in the public fund market can exceed 9%, but the maximum drawdown level is far lower than that of various equity funds. For investors who need to add a layer of safety to their investments in a volatile market, secondary debt funds are a very good choice. The secondary debt fund mainly invests in bonds, but a small amount of 20% of the position can be invested in stocks, and can also participate in the subscription of new shares in the primary market. The investment in stocks is flexibly allocated by the fund manager. The fund manager will decide the degree of participation in the stock market based on changes in market conditions, but the maximum position cannot exceed 20% of the fund's assets. This creates the natural advantage of secondary debt base drawdown control. From the perspective of asset allocation, bonds are essential in the investment portfolio. Although the returns are difficult to impress us, they can very effectively help us balance market risks. At the same time, compared with time deposits, bank financial management and monetary funds, bond funds have lower thresholds and are more liquid, which helps balance and stabilize overall investment returns. Bond funds are likely to outperform inflation in the long run.