How to buy a bond fund is better?
1 time of establishment: bond funds are generally recommended to be established for a long time, preferably more than 3-5 years, because the debt base pays more attention to stability, and the stability of the fund is mainly evaluated from historical data. The longer the fund is established, the more data we can refer to and the more accurate the evaluation will be. Moreover, the fluctuation cycle of the bond market will be longer, so the longer it is established, the more it can be seen in different markets. As for the debt base that has been established for too short a time, individuals will suggest avoiding it.
2. Fund rating: the rating is mainly based on the evaluation of the past performance of the fund by professional institutions. The higher the fund rating, the better for the fund. Compared with the instability of stock funds, the rating of debt base will be more valuable. Generally speaking, the minimum score should be above 3 stars, preferably 5 stars, but this is only for reference.
3 Historical performance: It is best to choose a debt base with stable performance and good performance. In terms of performance, it is best to always outperform the average level of the same kind, because this can provide us with higher returns. As for stability, it is because we choose bond funds to avoid large fluctuations, otherwise we choose stock funds directly.
Through the analysis of its historical performance, we can mainly look at the comparative data between historical performance and benchmark and similar average, which will play a certain reference role for everyone to evaluate the historical performance and stability of the fund.
4 fund positions: In fact, although some funds write bonds or have bonds in their names, in fact, their positions are not only bonds, but also stocks, and the proportion of stocks is even higher, so we must pay attention to the proportion of various investment targets and specific positions.
5 Fund size: Bond funds are not so affected by the fund size, so the fund size is not a very important factor. However, the size of the fund should not be too small, because if the size of the fund is less than 200 million, there is a risk of liquidation, especially if the organization is small and the proportion is high, generally between 500-654.38+0 billion.
Large fund companies often have stronger bargaining power and richer resources at the bond trading level because of their own income model and trading nature. However, this does not mean that the scale of the fund can be expanded indefinitely, otherwise, high-quality bonds may not be available and the income may be affected. On the whole, when choosing a bond fund, the size of the fund is not the most important consideration, and it needs to be discussed one by one according to the situation.
6 Fund risk: In fact, the risk level of each fund will be generally marked, and several debt bases will be rated as medium and low risk. Then if a debt base is rated as medium risk and there is no stock position, you can study where the risk of this debt base comes from. For example, different types of bonds have different risk probabilities, and the risk of general credit bonds will be relatively high. These must be known before investing. In addition, attention to its risks can also be compared from data such as volatility, withdrawal interval and maximum withdrawal amount.
Generally speaking, although the overall fluctuation of bond funds is relatively small, how to choose a fund with excellent long-term performance also needs to be carefully selected. * Financial management is risky and investment needs to be cautious. The above contents are personal opinions, for reference only, and do not constitute any investment advice.