Formally speaking, this bond is a mixture of bonds and stocks, which can get fixed interest like bonds and participate in dividends like stocks. This bond is essentially a floating rate notes, and the relationship between the bondholder and the company is still a creditor-debtor relationship, and the bondholder has no control over the company. This bond is less risky and more attractive to investors.
Do I have to pay tax on the income of bond funds?
No, individual investment funds do not need to pay any taxes, including stamp duty, fund capital gains income tax and fund dividend income tax. Fund transactions only need to pay handling fees, including subscription fees, redemption fees and operating fees.
The charging standards of each fund are different, and investors can inquire in the fund trading rules. The subscription fee varies according to the subscription amount. The larger the subscription amount, the lower the fee, and the redemption fee varies according to the length of the fund. The longer you hold it, the cheaper the redemption fee will be. Operating expenses are deducted from the fund assets, calculated on a daily and monthly basis, and are not charged separately to investors.