Abstract:
The main investment objects of convertible bond funds are convertible bonds, and overseas convertible bonds are also included. shares, so they are also called convertible funds. The basic elements of convertible bonds include benchmark stocks, bond interest rates, bond maturity, conversion period, conversion price, redemption and putback terms, etc. Let’s learn more about it below.
Basic content of convertible bond funds:
The main investment objects of convertible bond funds are convertible bonds Convertible bonds, the main investments of overseas convertible bond funds also include convertible bond funds convertible preferred stocks, so they are also called convertible funds. As the name suggests, convertible bonds are corporate bonds that are convertible, which means that the bonds can be converted into stocks (benchmark stocks) of the company that issued the convertible bonds within a specified period and at a specified conversion price. Investors holding convertible bonds can convert the bonds into stocks during the conversion period, or sell the convertible bonds directly on the market for cash, or they can choose to hold the bonds to maturity and collect principal and interest. The basic elements of convertible bonds include benchmark stocks, bond interest rates, bond maturity, conversion period, conversion price, redemption and putback terms, etc.
Lock-up risk of convertible bond funds:
Convertible bonds issued by listed companies have claims and The dual characteristics of equity, with a definite bond period and regular interest rate, can provide investors with stable interest income and principal repayment guarantee. At the same time, its equity characteristics may bring excess returns to holders, and it has the unique advantage of convertible bond funds of "bounded downside risks and unlimited upside returns", thus avoiding the shortcomings of high stock risks and low bond returns.
Convertible bond funds are a type of special fund product that invest in convertible bonds in a relatively high proportion. The proportion of convertible bond funds investing in convertible bonds is generally 60 About %, which is higher than the proportion of convertible bonds usually held by bond funds. Take Industrial Convertible Bond Fund as an example. This fund mainly invests in convertible bonds, with the proportion of stock investment not exceeding 30%.
For many investors who are unfamiliar with investing in convertible bonds, convertible bond funds have two advantages. According to researchers from the Financial Innovation Department of Tianxiang Investment Consulting, one of the advantages of convertible bond funds is that the pricing mechanism of convertible bonds is very complex, which is difficult for ordinary investors to familiarize with and requires a lot of research effort. Fund companies have dedicated peopleResearchers research and track convertible bonds, giving them a professional advantage over individual investors. And by pooling small amounts of funds to invest uniformly in the convertible bond market, fund companies can minimize information collection costs, research costs, transaction costs, etc., thereby achieving economies of scale and allowing investors to share the overall benefits of the convertible bond market.
Another advantage of convertible bond funds lies in their unique risk-return characteristics. The main investment object of convertible bond funds is convertible bonds, which have the characteristics of lower risk and higher return. Convertible bond funds usually use the bond characteristics of convertible bonds to avoid systemic risks and individual stock risks, pursue safe and stable returns on investment portfolios, and use the inherent stock options of convertible bonds to further increase the fund's income level when the stock market rises. .
Investment strategy of convertible bond funds:
1. Maintain a higher position and select Varieties, concentrated holdings
Since convertible bonds have limited risks and unlimited returns in theory, they are especially suitable for heavy holdings of excellent varieties, which were launched in 2005
The convertible bond fund’s half-year experience also proves the effectiveness of this operational idea.
2. Basic stock valuation is based on full circulation
In terms of stock investment, full circulation is the basis As a basis for valuation, we will increase research on "consideration" and take advantage of the investment opportunities brought by the uncertainty of A-shares to create good returns.
3. Increase the proportion of positions in strong equity convertible bonds and take advantage of market fluctuations to strike a balance between profitability and safety.
During the market downturn, increase the position of convertible bonds with strong equity nature, use the possible adjustment of the conversion price to improve the equity nature of the convertible bonds, and do a good job in convertible bond holdings Optimize and balance the profitability and safety of convertible bond positions.
Advantages of convertible bond funds:
First, due to the strong debt nature of convertible bonds and Compared with government bonds and corporate bonds of the same maturity, convertible bond funds have certain advantages
Convertible bond funds; second, the increase in market uncertainty has increased the option value of convertible bonds ;
The third is the relatively low level of the index and the increase in the proportion of QFII and insurance companies investing in convertible bonds.Large, further locking in the downside risk of convertible bonds;
Fourth, the continued downturn in the market and the continuous revision of the conversion price have enhanced the rebound or reversal of convertible bonds in the market aggressiveness.
At present, the equity nature of the entire convertible bond market is strengthening, and the debt nature is also very prominent. The advantage is that when the judgment of the market is wrong, it can be corrected The cost is extremely low; and once the stock market rebounds, the convertible bond market can also enjoy the same benefits.
Purchases of convertible bond funds:
In the context of continued stock market volatility, bond funds Favored by investors. Experts remind that although bond funds have the characteristics of anti-risk and stable returns, investors should not "full positions" when buying bond funds. At the same time, they should pay attention to the following issues.
First of all, you must understand the investment scope of bond funds. The main reason why bond funds resist risks in the turbulence of the stock market is that bond funds have a considerable degree of "detachment" from the stock market. That is, most of the funds of bond funds do not invest in the stock market, but mainly make profits by investing in the bond market. In addition, although enhanced bond funds can invest in the stock market through "new stocks", "investing in convertible bonds", etc., they have strict proportion restrictions. For example, ** Wynn Bond Fund's investment in the stock market is mainly to participate in new share subscriptions, and only invests a small part of its assets in the secondary market at opportune times, and such investment must not exceed 20% of the fund's assets.
Secondly, we should pay attention to the transaction costs of bond funds. The transaction fees of different bond funds will vary by 2 to 3 times. Therefore, investors should try to choose bond fund products with lower transaction fees. In addition, most old bond funds have subscription and redemption fees, while most newly issued bond funds use sales service fees instead of subscription fees and redemption fees, and the sales service fees are accrued from the fund assets and investors do not need to pay them when trading. .
Finally, don’t have too high expectations for bond fund returns. In 2007, the average return rate of bond funds was around 20%, but its "excess returns" mainly came from new share subscriptions, convertible bond investments, etc.; in 2008, due to the intensified stock market volatility, new share subscriptions and convertible bond investments Income will be tested, so investors should not have too high expectations for bond fund returns.
Summary:
Convertible bond funds use the price of the stock of the company that issued the bond to convertible bonds. Price has a great influence. Hua Lu editor reminds that although it canThere is not a completely positive correlation between the price of convertible bonds and the stock price, but the two are closely linked. When stock prices soar, the price of convertible bonds rises; when the price of convertible bonds is much higher than the intrinsic value of the bond, there is a great risk.
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