The Ultimate Evolutionary Model of Bond: bond Fund

Maybe at first you were ambitious and ready to play your part in the bond market, but you were discouraged by the risks and complexity of bonds-it was too complicated to buy a bond that weighed both risk and profit.

As a lazy (cross out! For busy small investors, it is quite difficult to get a huge return by investing in a single bond, and it takes luck. But the income and upward trend of the temptation are hard to give up. At this time, bond funds gradually occupy the stage C.

01 debt base: "stabilizer" in asset allocation

Bond fund is a type of fund which mainly invests in bonds such as treasury bonds, corporate bonds, convertible bonds and so on.

Compared with direct investment bonds, the debt base invests different bonds by pooling investors' funds, and this "widely distributed debt base method" effectively spreads the risk of a single bond; at the same time, many fund companies launch overseas bond funds, which can fully realize the global ambition to make money.

In addition, the professional team of fund companies will fully investigate all kinds of bonds in the market and select the best bond portfolio, which is simply a "international one-stop service".

Because of its low correlation with the stock market, the general stock market volatility has little impact on it, so the risk level of the debt base is much lower than that of the stock base, and it is even regarded as a "stabilizer" in asset allocation by Benjamin Graham, the godfather of Wall Street.

02 human tragedy? Debt-based rollover logic

So will the investment debt base be unbreakable? Niuniu showed a bitter and embarrassed smile and touched his conscience to tell you that of course there is no such good thing.

First of all, the debt base usually requires more than 80% of the assets to be invested in bonds, and the remaining 20% can be flexibly allocated according to market conditions, that is, the debt base can invest a small amount in other assets such as stocks. Generally speaking, the higher the proportion of stocks in the debt base, the greater the possible return and the higher the corresponding risk. Stock allocation is really a grinding leprechaun, inserting a price rocket into the debt base when the market is strong, and throwing a stone into a well when the market falls, so that the majority of investors both love and hate.

Second, although the debt base disperses the concentrated risk of individual bonds, investors still need to have a clear understanding of the rules of the bond market in advance. In the bond market, credit risk and interest rate risk are the two most common robbers on the way to make money. On the one hand, if the bonds default or the market's expectation of default increases, the net value of the debt base will fluctuate to a certain extent; on the other hand, changes in interest rates will lead to changes in the net value of the fund, and if the market interest rate rises, then the bonds in the allocation will "depreciate" and the income of the bond fund will be reduced accordingly.

There is a large gap in the returns of different bond funds, so before entering the fund, we must pay attention to the strength of fund companies and asset allocation. Generally speaking, fund management companies with strong investment management ability, perfect risk control system and high investment service level are more likely to achieve long-term and stable performance, while the proportion of assets with fluctuating returns such as stocks and speculative bonds in allocation, it also directly affects the risk and return level of the fund.

Conclusion

There is no need to "talk about loss and color change". Relatively speaking, the risk of debt base is still on the low side. In particular, fund managers will avoid companies at risk of default through professional analysis, and spread the risk through diversified investments. Although affected by various factors, the yield of the bond fund may not be satisfactory in a short period of time, but in the long run, the return of the bond fund is still considerable, especially suitable for investors who pursue soundness and small ambition.