GUANGZHOU (Fund China) - In April 23, the introduction of the stamp duty reduction programme greatly stirred up the market sentiment. With the resumption of the market, investors’ enthusiasm was inspired once again. In this case, can we buy bond funds? Li Zhengcheng, the manager of Yimin foison fund, considered that in the view of asset allocation, regardless of future stock market up or down, it will have not direct influence to Bond Fund, and for the Bond Fund market, it is the right time to invest Bond Funds.

Bond Funds have not necessity contact with stock market

In the case of goverment is rescuing the market, will it reproduce the bull market two years ago? In this regard, Cheng think that the foundation of bull market is macroeconomic and enterprise efficiency, the market economy has its own rules of operation. The launch of Bond Funds has not directly related to optimistic about the stock market or not, now it is a good time to invest Bond Funds. He believes that the development of bond markets is necessary for economic development, vigorously develop the bond market is an important action for China raise the proportion the capital market direct financing, the large-scale launch of Bond Funds is conform to this trend. At present, managers are paying attention to the development of the bond market, which include the construction of the yield curve, the improvement of launch and trading system, riched the variety and the cultivation of the market, so we can optimistic about the development of bond market in the future.

Choose Bond Funds to defeat CPI

Bond Funds are also called fixed-income securities, it means that the yield is determined relatively. The stock market’s uncertainty is increase this year, and it is hard to reproduce the rising trend of the pattern such as 2007, now we are observing the stock market, so to the investors, they also need the certain return on investment. But now the investors should choose the Bond Funds which is in low risk relatively. “this year the level of the CPI is widely expected not less than five percent. Our goal is to defeat inflation, no matter what age, they will need to have assets on the part of a stable income of low-risk financial, which is the only way to enable investors to achieve the most basic functions.” Zheng Kecheng said.

Copyright Fund China 2008.

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