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What to buy in a volatile market? Pursuing "fixed income" products with both offensive and defensive capabilities is the best investment choice

2024-08-16

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Text/ Xue Yan, Research Office

This year, as the stock market continued to fluctuate, the bond market was sought after by safe-haven funds. Although there were several pullbacks during this period, they eventually recovered the lost ground.

In fact, there has always been a "seesaw effect" in the stock and bond markets.

In recent years, A-shares have long hovered around 3,000 points of the Shanghai Composite Index, showing a weak oscillation trend. According to Wind data, as of the close of August 9, 2024, the CSI 300 Index has risen or fallen by -2.9% this year, but the amplitude is as high as 17.33%.

In sharp contrast to the equity market is the bond market. In recent years, bond interest rates have continued to decline and bond prices have continued to rise.

Obviously, the "bond bull market" in recent years has provided investors with investment opportunities.

However, many investors are faced with a dilemma. First, A-shares are currently at a relatively low level, and the value of the long-term layout window is gradually emerging; second, investors do not want to miss the current bond market.

In the current volatile market, are there any products on the market that can meet investors’ investment needs of “both” and “want both”?

Industry insiders believe that pursuing "fixed income +" products that have both offensive and defensive capabilities becomes a more appropriate choice, especially those fixed income + funds with low volatility and strong long-term capabilities.