Investors may think that bond funds only invest in bonds, but in fact bond funds can also invest a small part of their funds in the stock market. In addition, investing in convertible bonds and issuing new shares are also important channels for bond funds to obtain income.

Ordinary bond yield

In the traditional sense, bond funds take bonds as the main investment target, and the proportion of bonds is generally higher than 70%. Because the fluctuation range of bond prices is much smaller than that of stocks, the risk is low, and most overseas bond funds have regular and stable interest distribution, which is suitable for conservative and steady investors. The rise and fall of bond prices is inversely proportional to the rise and fall of interest rates. The credit of a bond fund depends on the credit rating of the bonds it invests in.

Convertible bond income

Convertible bonds were divided into the investment scope of stocks in previous years, and now convertible bonds are divided into bonds. Convertible bonds are called convertible corporate bonds, which can be converted into company stocks under certain conditions. Convertible bonds have the dual attributes of creditor's rights and options, and their holders can choose to hold bonds until maturity to obtain the company's principal and interest; You can also choose to convert it into stocks within the agreed time and enjoy dividends or capital appreciation. Therefore, the investment community generally joked that convertible bonds are stocks that guarantee the principal for investors. Now bond funds generally include ordinary bonds and convertible bonds in bond investment. Ordinary bonds include treasury bonds, financial bonds, corporate bonds, central bank bills and repurchase and other investment products in the money market. Because convertible bonds can be converted into stocks, price changes have a certain relationship with the corresponding stocks, but with debt protection, the downside risk is limited and there is no limit on the rise. This kind of assets has a good risk return rate and is a very advantageous asset.

Income from playing new shares

At present, some bond funds use a considerable amount of funds for "IPO" and can continue to hold shares for a certain period after IPO. Some bond funds have actually "deteriorated", not so much bond funds as new stock funds.