Is the service fee of A Niu ZhiTou reliable? What are the benefits of allocating a pure debt fund?

As the financial markets change, our asset allocation will have to be adjusted accordingly. Appropriately reducing the holding ratio of cash-like assets also means seeking more suitable investment targets. Many investors will think of improving financial returns by allocating pure debt funds. So what are the benefits of allocating a pure debt fund?

Low drawdown low risk

Pure bond funds are a type of low risk in the fund, compared with the more volatile equity funds, pure bond funds are more suitable for stable investors, and occupy a place in the low-risk financial management of asset allocation. Ordinary bond funds invest more than 80% of the funds in bonds, while pure debt funds, as the name suggests, are funds that specialize in bonds, and its risk is the lowest among all debt bases. Low risk and low drawdown are the first advantages of pure debt funds.

Liquidity is good and the income is fixed

Pure bond funds mainly use fixed income financial instruments such as treasury bonds and financial bonds as investment objects, and do not participate in equity asset investment in any form, so they are less affected by market fluctuations and the net value of the fund is stable. Pure debt funds are representatives of fixed income wealth management products. The income is higher than that of monetary wealth management, and the liquidity is also good, which can meet the needs of investors for short-term financial management.

Low cost

Pure bond funds do not charge subscription or subscription fees, and the redemption rate of pure debt funds is also very low compared to other types of debt bases. The relatively low cost of investing in a pure bond fund is one of the reasons why it is popular with investors.

Reverse investment

Bond fund yields and market interest rates change in the opposite direction, so low market interest rates are good for pure bond funds. When the return on our investment in the money market is not good, investing in pure debt funds can achieve better returns.