"Fixed Income +" Funds Gain Popularity
Recently, the market has entered a new phase of interpretation, and the attention to "fixed income +" fund products that can both attack and defend has increased.
From the dull period after the redemption tide, to the renewed focus from the channel end, and then to the new favorite in the volatile market, "fixed income +" funds have won the favor of more and more investors with their stable and moderately aggressive investment strategy. Looking forward, "fixed income +" funds may become a key area for asset management institutions to focus on, providing investors with new financial choices that combine safety and returns.
"Fixed income +" funds enter a favorable period
Statistics show that as of November 22, 94.26% of "fixed income +" funds have achieved positive returns within the year, with an average return of 3.97% year-to-date, and some products' net value has reached a new high.
After experiencing the redemption tide, "fixed income +" funds have recently regained the attention of the channel end. Several third-party sales practitioners told reporters that in recent years, not only have the interest rates on fixed deposits continued to decline, but the interest rates on high-interest deposits such as large-amount certificates of deposit and structured deposits have also continued to fall, and the quotas have become increasingly scarce. Against the backdrop of rapidly declining deposit interest rates, bank wealth management can no longer meet investors' needs for stable wealth management, and the returns on pure bond products have also become constrained, so many investors have turned their attention back to "fixed income +" funds.
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"Listed companies have also shown a clear change in capital allocation. Cash trust products have gradually lost their former favor, and 'fixed income +' funds, with their characteristics of being able to attack and defend, have begun to become a new investment choice for listed companies," the above-mentioned person said.
The bearish mindset is gradually being abandoned, and the popularity of "fixed income +" fund products is expected to increase. Zhang Jiqiang, the head of the research institute at Huatai Securities, believes that in the first half of this year, the bond market was strong, and equity has warmed up, but due to the market's risk preference not being fully restored after the redemption tide, coupled with investors taking profits on the rise, the fundamental mentality is still defensive, and those with good performance have encountered redemptions.
"The market mentality has recently changed, due to the stock market being in a volume-driven stage, market confidence has been restored, and investors are gradually changing their bearish mindset. Especially for wealth management and other opportunities with low opportunity costs, there is still a high demand for assets with slightly higher returns and relative stability," Zhang Jiqiang said.
"Fixed income +" funds have become the new favorite in the volatile market
"Fixed income +" can be understood as an investment strategy that focuses on stability and liquidity management while moderately sharing opportunities in the stock market. Its investment goal is to strive for long-term stable returns while strictly controlling risks. Industry insiders analyze that "fixed income +" funds show the beauty of balance between equity funds and pure bond funds, neither too aggressive nor too conservative, providing investors with a compromise, which is very suitable for the current volatile market.
CITIC Construction Investment's Wealth Management Department believes that after the strong rise of the A-share market in late September, it has recently fallen into a state of fluctuation. On the one hand, the rapid rise of the stock market has stimulated investors' enthusiasm, leading to some funds flowing from the bond market to the stock market; on the other hand, positive signals from the macroeconomic level continue, and the continuous efforts of fiscal policy have strengthened the market's expectations for the improvement of the economic fundamentals. These factors have led to fluctuations in the bond market.
Many investors who pursue stable investments may worry about the significant fluctuations in the market, worrying that the assets they hold cannot keep up with the pace of the market's rise, and they dare not easily enter the high-volatility equity market. Therefore, many market practitioners suggest considering a mixed strategy of stocks and bonds of "fixed income +". By reasonably allocating the investment ratio of stocks and bonds, the overall risk of the investment portfolio can be effectively controlled, helping investors to get through the market's volatile period smoothly.
Expected to become a key area for asset management companies to focus on
Looking forward to next year, against the backdrop of the recovery of the equity market, "fixed income +" funds are expected to become a key area for public funds and bank wealth management institutions to focus on.
Zhang Jiqiang believes that investment is a process of adaptation. After experiencing the redemption period and the expectation calibration period, "fixed income +" funds have gradually returned to the channel's field of vision. Their micro-research found that the channel is increasing the layout and recommendation of "fixed income +" fund products. After a net redemption period of more than two years, some high-performing "fixed income +" fund products are becoming the key recommendation varieties of the channel at the end of the year and the beginning of the year.
"Under the background of 'asset scarcity', a large number of customer assets are accumulated in pure bond assets, and the uncertainty affected by asset singleness is increasing. The channel, combined with revenue creation and other considerations, has the demand to recommend 'fixed income +' fund products. The equity market continues to be hot, and customers themselves also have the need to allocate equity assets, and the opportunity cost of fixed income assets is still low, and they have begun to actively allocate some 'fixed income +' fund categories," Zhang Jiqiang said.
Regarding the investment strategy of "fixed income +" funds, the manager of Guangfa Xinhe Mixed Fund said that in the medium and long term, the long-term liquidity released by the reserve requirement ratio reduction still has protection for the bond market, and it is necessary to pay attention to liquidity and the stability of the liability side, focusing on the allocation opportunities of medium and short-term high-grade varieties and the allocation opportunities of long-term varieties brought by bond market adjustments. The equity market may switch to a structural bull market, focusing on industries that benefit from policy benefits and valuation repair brought by targeted liquidity injections. In the future, it will flexibly adjust positions in stocks, take profits and stop losses in a timely manner, and flexibly adjust the structure of bonds, portfolio leverage, and duration distribution in bonds.