I have long been concerned about bond funds, especially short bond funds, and in a post I mentioned that there are some short debt funds with closed periods in the A-share market.
Now that there are similar products in the Hong Kong market, which seems to me to be a good alternative to time deposits, especially this time the Bosa Fund also applied leverage to enhance the yield. $Bosera Stable Income 18-Month Interval Offering Bond Fund-I MDis (HK0000919685.MF)$
I have also mentioned many times before to explain the bond's two ways of earning.
1. Bonds hold interest on maturity. For example, for buying a 1-year Hong Kong government bond with $10,000, coupon interest rate of 2.5%. After a year, you will receive the principal amount of 10000+250=$10250.
2. The price fluctuations of the bond itself. For example, the Hong Kong government bonds that have just been bought with 10,000 yuan. When the purchase has not yet matured, the bond price rose from 10,000 yuan to 10100 yuan to sell, making a profit of 100 yuan.
These are the two types of yield of bonds. We usually buy bond funds are the second type. Therefore, we will see that the net value of the debt base is constantly fluctuating. Many of the bond base volatility is even greater than mixed or equity funds, which is due to fluctuations in the price of the bond itself.
But this time the new base of the Boeras takes the first way,...