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What is a pure debt fund?
What is a pure debt fund? Pure debt fund is a fund that specializes in investing in bonds. Bonds are issued by enterprises and countries, and they all have a characteristic: they have a certain term, and the principal and interest are returned at maturity, and the interest is higher than that of bank deposits. Therefore, the risk of buying a pure debt fund is not great, and its biggest risk is that it cannot keep up with the pace of inflation.

Common varieties of pure debt funds

Common pure debt funds in the market, among which, short-term and medium-term debt includes easy monthly income, Thai letter short-term debt, Jiashi short-term debt, AIA short-term debt, Bosera stable value, Nuoan short-term and medium-term debt fund, and Southern Dolly short-term debt fund; Huaxia bond is also a pure bond fund.

Development prospect of pure debt fund

Pure debt funds are expected to lead the gains. Bank of Communications Schroeder Fund officials said that in the case of the continued downturn in the stock market, pure debt funds that basically do not invest in the secondary stock market will become the star of this year's fund increase list.

According to the data from Galaxy Securities, in August, the yield of pure bond funds that can only invest in the primary stock market is quite different from that of general bond funds that can invest in the secondary stock market, and the average net growth rate is 0.5 1% and 0. 17% respectively, which is as high as three times.

Xiang, general manager of the fixed income department of Bank of Communications Schroeder Fund, said that he also has the "birthright" of bond funds, but investors need to compare carefully when choosing. "The main reason for the excellent performance of pure debt funds this year (2008) is that besides not being able to participate in the investment in the secondary market itself, even if new shares are issued, they will adopt the strategy of withdrawing as soon as possible to effectively avoid the risks in the secondary market."

In August, the monthly income of Bank of Communications Schroeder Bond Fund, which ranked first in yield, exceeded 1%, and the income achieved since its establishment more than five months at the end of March was as high as 5.05%, much higher than that of the bond fund established in the same period in 2008.