Many investors will ask why we don't invest in pure bonds ourselves when we give money to pure bond fund managers to help us invest and they also charge management fees, subscription fees, redemption fees, etc? Isn't it cheaper? For new investors, it is better not to invest in bonds directly. Why on earth?
First, the bond market is divided into the exchange market and the inter-bank market. The bond trading market is like the secondary market of stocks. Although the investment threshold is relatively friendly, the variety of bonds is relatively poor. The interbank market has a large number and good liquidity, but the investment threshold is very high, which is not easily affordable for ordinary people.
Second, if we invest in non tradable bonds, they can only be cashed when they are due, and we can't sell them when we want to, so our investment lacks liquidity. So we usually invest in bonds by buying bonds. As long as you do not invest in fixed open-ended funds, you can sell them at any time. Liquidity has increased significantly.
Third, share the investment risk equally. The risk of investing in a single bond is higher than that of investing in a basket of bonds. Therefore, portfolio investment of different bonds can effectively reduce the investment risk without reducing the overall income of bonds.
The fourth is to reduce the difficulty of investment. Many investors think that stock investment is very complicated, but shouldn't bond investment be very simple? In fact, there are more and more kinds of bonds in the bond market, such as convertible bonds, exchangeable bonds, even credit bonds, subordinated bonds, junk bonds, etc. The issuers are also becoming more and more diversified, such as financial bonds, national bonds, local bonds, corporate bonds, corporate bonds, and international bonds. The credit rating and risk management of bonds are also becoming more and more complex, and it is necessary to judge the future interest rate trend and other macroeconomic indicators. At the same time, investing in bonds also requires investment strategies, so on the whole, we should invest in bond funds more appropriately than directly investing in bonds.
The risk of pure bond funds is more suitable for investors with low risk tolerance or prudent investors, that is to say, under the premise of complete stability, they can win or at least even the yield of cpi in the long run. In fact, no matter what type of investors, even young people or radical investors, should allocate more pure bond funds.
The dividend of pure bond fund is relatively stable. Although we are not shareholders of the fund company, we are the fund holders and the fund manager works for us. So when this bond fund earns a lot of money, we can cash in the income in the form of dividend. However, the nature of fund dividends is different from that of stock dividends. If a listed company does not pay dividends, the money will remain in the company's own pocket. Shareholders cannot earn a penny. The money in the fund is different. It is our own money, and we can redeem it at any time. So whether we pay dividends or not, it has no real impact on our immediate interests. So the dividend of the debt base is just to help you move the money from the left pocket to the right pocket. If you have money that you can't use for several years, you can also invest in the bond base that does not pay dividends. When the fund has dividends, we can choose cash dividends or dividends for investment. Of course, when dividends are not used for specific purposes, we should choose dividends for reinvestment, so that the money can continue to make profits in the fund and play a compound interest effect.
