Pure debt fund is a kind of fund with fixed income financial assets as its main investment target, and its main purpose is to provide investors with stable income. Pure debt funds are considered as low-risk investment products. Next, discuss the pure debt fund from five aspects.
First, the concept and characteristics of pure debt fund
Pure debt fund refers to the fund with fixed-income financial assets as the main investment target, which mainly includes fixed-income securities such as national debt, local government debt, corporate debt and corporate bonds. The income of pure debt fund mainly comes from the interest and appreciation of bonds, which has high stability and low risk. The yield of pure debt funds is lower than that of equity funds and hybrid funds, but the risk is relatively low.
Second, the investment strategy of pure debt funds
The investment strategy of pure debt fund mainly includes choosing high-quality bonds, controlling the duration of bonds and choosing the appropriate term. Choosing high-quality bonds means choosing bonds with high credit rating and strong solvency to reduce credit risk. Controlling the duration of bonds refers to choosing bonds with shorter remaining maturity to reduce interest rate risk. Choosing the right maturity refers to choosing bonds with different maturities according to market conditions in order to obtain higher returns.
Third, the advantages and disadvantages of pure debt funds
The advantages of pure debt fund are stability, low risk and relatively stable income. At the same time, pure debt funds have good liquidity and investors can buy and sell at any time. The disadvantage of pure debt fund is that its income is relatively low and it can't get high income.
Fourth, the applicable population of pure debt funds.
Pure debt funds are suitable for investors who are risk-averse and pursue stable returns. At the same time, pure debt funds are also suitable for investors who need short-term capital turnover.
Five, the purchase skills of pure debt funds
When buying a pure debt fund, we should focus on the investment strategy of the fund, the experience and performance of the fund manager, the size of the fund and other factors. At the same time, it is also necessary to understand the cost and risk management mechanism of the fund.
Pure debt fund is an investment product with low risk and relatively stable income, which is suitable for investors who hate risk and pursue stable income. When buying a pure debt fund, we need to pay attention to the investment strategy, the experience and performance of the fund manager, the fund size and other factors.