First, the difference between security.

In addition to investing in bonds, long-term debt funds can also invest in convertible bonds and a small number of stocks, while short-term debt funds only invest in short-term bonds and do not involve the equity market. Therefore, the security of long-term debt funds is not as good as that of short-term debt funds.

Second, the difference of expected rate of return.

The expected return of long-term debt funds fluctuates greatly, while the expected return of short-term debt funds is relatively stable. Generally speaking, when the bond market is bullish, the expected return of long-term debt funds is higher; In the bond bear market, the losses of short-term debt funds are even smaller.

Third, the difference between handling fees.

Long-term debt funds charge fund subscription fees and redemption fees, while short-term debt funds, like money funds, do not charge fund redemption fees.

Third, the difference in redemption time.

Redemption funds of long-term debt funds will arrive within five working days, and redemption funds of short-term debt funds will arrive within two working days, so the flexibility of short-term debt funds is better.

Bond funds, also known as bond funds, refer to funds that specialize in investing in bonds. By concentrating the funds of many investors, we can make portfolio investment in bonds and seek relatively stable returns.

Bonds are creditor's rights and debt certificates issued to investors when the government, financial institutions, industrial and commercial enterprises and other institutions directly borrow money from the society to raise funds, and promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions.

According to the classification standard of China Securities Regulatory Commission, bond funds refer to funds with more than 80% of fund assets invested in bonds. Bond funds can also put a small amount of money into the stock market. In addition, investing in convertible bonds and issuing new shares are also important channels for bond funds to obtain income.

In China, bond funds mainly invest in government bonds, financial bonds and corporate bonds. Usually, bonds provide investors with a fixed return and repay the principal at maturity, and the risk is lower than that of stocks. Therefore, compared with stock funds, bond funds have the characteristics of stable income and low risk.

trait

superiority

Ordinary investors can easily participate in the investment of inter-bank bonds, corporate bonds, convertible bonds and other products. These products have various inconvenient restrictions on small funds, and buying bond funds can break through this restriction.

(2) When the stock market is in a downturn, the income of bond funds is still very stable and is not affected by market fluctuations. Because the product income invested by bond funds is very stable, the corresponding fund income is also very stable. Of course, this also determines that its income is subject to the interest rate of bonds and will not be too high. The annual interest rate of corporate bonds is around 4.5%, and the annual rate of return can be guaranteed to be between 3.3% and 3.5% after deducting the operating expenses of the fund.

disadvantaged

(1) Only when it is held for a long time can it obtain a relatively satisfactory return.

(2) When the stock market skyrocketed, the income remained stable at the average level, which was lower than that of equity funds. When the bond market fluctuates, there is even the risk of loss.

influencing factor

The two main factors affecting the performance of bond funds are interest rate risk, that is, the sensitivity of the bonds invested to interest rate changes (also known as duration) and credit risk. When choosing a bond fund, we must understand its interest rate sensitivity and credit quality. On this basis, we can understand how high the risk of the fund is and whether it meets your investment needs.