GUANGZHOU (Fund China) – Recently, the fixed-income funds are concerned by investors. On how to choose low-risk funds, the reporter had an interview with Wu Shengtao, the manager of Harfor Growth & Income Bond Fund.

The manager said that although the products in money market and bond market belong to the same type of fixed income products, there are still some differences in positioning between the two markets. Money market funds pay more attention to liquidity, positioning in the financial instruments that are replaced by flowing cash. So the risk is very low. However, bond funds bear a portion of volatility risk in the bond market. Therefore, bond funds are the kind of funds which have appropriate risk and moderate return. And their risk revenue is between money funds and equity funds.

The manager also said that investors need to allocate some low-risk funds in their assets allocations so that the investment will be healthy.

Copyright Fund China 2009.

You Might Like: