Today, as the concept of financial management is deeply rooted in the hearts of the people, more and more friends are beginning to buy funds, financial products or stocks.

When some friends were choosing funds, they discovered that there are two types of bond-related funds, one is convertible bond funds and the other is bond funds. The two look very similar.

Because there are still many friends who have not figured out the difference between convertible bond funds and bond funds, so we are here to introduce to you the differences between the two.

To put it simply, the difference between convertible bond funds and bond funds mainly focuses on two aspects. One aspect is different investment objects, and the other aspect is different stability.

Different investment objects: The main investment object of convertible bond funds is convertible bonds, while the main investment objects of bond funds are treasury bonds, financial bonds and corporate bonds.

Here, we will introduce to you what convertible bonds are.

Convertible bonds are bonds that the bondholder can convert into common stock of the company at a price agreed at the time of issuance.

If the holder does not exchange shares within the specified period, the principal and interest can be collected at maturity, or they can be sold and liquidated on the secondary market.

Different stability Because the convertible bonds held by convertible bond funds have the right to be converted into stocks, when there is a bull market in stocks, the investment returns that convertible bond funds can obtain will be relatively high.

Compared with convertible bond funds, the expected returns of bond funds are relatively stable.