- What is a convertible bond fund ?
A convertible bond fund is a fund that mainly invests in convertible bonds . Therefore, we still have to understand what is a convertible bond, which is a kind of bond issued by a listed company. The holder can be a creditor, always holding convertible bonds, so that the listed company can repay the principal and interest; or as a shareholder, it can be converted into shares of the corresponding company according to the agreed conditions. Whether you are a creditor or a shareholder depends on market timing and your risk appetite.
When the market is down, give full play to the role of debt to avoid systemic risks; when the market is up, take advantage of the investment opportunities brought by the bull market.
Therefore, a convertible bond fund is a fund that buys a basket of convertible bonds. Under normal circumstances, the proportion of convertible bond funds invested in fixed income securities in the market shall not be lower than 80% of the fund assets.
- What is the return of the convertible bond fund?
Now, convertible bonds are very popular. Apart from the impact of the fixed increase financing model and the change of the issuance method from capital subscription to credit subscription, after all, the income is also very attractive.
On the first day of listing, Yuhong convertible bonds achieved a 20% return, and Linyang’s convertible bonds staged a “daily limit circuit breaker show”. You said that the excitement of holding is not excited, and the heart of onlookers is not excited.
Since the establishment of the first convertible bond fund in 2004, after a bull market, a bear market and a volatile market, the performance of CSI Convertible Bonds is generally better than that of CSI Composite Bonds and the Shanghai Composite Index, and even higher than the return of the Shanghai Composite Index. 40%.