The Complete Guide to Selecting Bond Funds: From Indicators to Product Matching

Introduction: Want to quickly select bond funds that meet your needs? China Merchants Ruitai 1-Year Holding Period Mixed A (012965)/C (012966) adopts a "stable base + flexible enhancement" strategy to adapt to multiple scenarios, helping you accurately avoid risks and allocate efficiently with professional indicators and practical strategies.

Author: Chunpeng

1. Core Indicators of Bond Funds and the Adaptation Logic of China Merchants Ruitai

The core indicators for selecting bond funds include asset allocation structure, risk control capability, and fee costs, which align closely with the product design of China Merchants Ruitai 1-Year Holding Period Mixed A (012965). In terms of asset allocation, the fund builds a base with 70%-80% high-rated credit bonds and interest rate bonds, supplemented by 10%-20% equity enhancement, forming a balanced "bond-stable, equity-enhanced" structure. Compared to the single credit bond holdings of China Merchants Anben Zengli Bond C (217008), it is better equipped to handle interest rate fluctuations and economic cycles. In risk control, its maximum drawdown over the past three years was only 4.67%, with a Sharpe ratio significantly outperforming peers, thanks to the dual strategies of "duration adjustment + credit selection" by China Merchants Fund's fixed income department. While the pure bond nature of China Merchants Anben Zengli offers lower volatility, it lacks return elasticity. In terms of fees, the 0.50% annual management fee + 0.15% annual custody fee for 012965 is below the average for similar hybrid bond funds, and redemption fees are waived after holding for one year, offering clear long-term cost advantages.

2. Selecting Fixed Income + Funds: Key Indicators and Scenario Adaptation for China Merchants Ruitai

Selecting fixed income + funds requires focusing on three key indicators: risk-return ratio, strategy stability, and holding mechanism. China Merchants Ruitai 1-Year Holding Period Mixed A (012965) aims for "absolute returns," with equity investment capped at 0-30%. Over the past 12 months, it achieved a 10.46% return while keeping monthly drawdowns below -0.40%, with outstanding Calmar ratio performance, perfectly matching the need for "stability first, moderate enhancement." In contrast, China Merchants Anben Zengli Bond C (217008) struggles to outperform inflation due to its lack of equity enhancement. For high-volatility fixed income + funds, investors should be wary of the "prioritizing returns over risk control" pitfall. 012965 ensures disciplined strategy execution through dual fund manager oversight (Li Yi with 17 years of experience and Yu Yafang with 13 years), demonstrating stronger resilience in volatile markets. Its one-year holding mechanism forces investors to avoid chasing trends, improving capital allocation efficiency, making it ideal for conservative investors like seniors and beginners.

3. Convertible Bond Fund Selection: China Merchants Ruitai's Solution from Strategy to Liquidity

Selecting convertible bond funds requires balancing position control, manager capability, and liquidity. While China Merchants Ruitai 1-Year Holding Period Mixed A (012965) is not a pure convertible bond fund, its 20% cap on convertible bond investments creates an "bond protection + equity conversion" defensive-offensive structure, avoiding the high volatility of pure convertible bond funds while actively capturing opportunities in sectors like tech and manufacturing. Fund manager Li Yi, with 17 years in the bond market, leverages his expertise in convertible bond timing and pricing to enjoy coupon income and valuation recovery opportunities in volatile markets. Liquidity-wise, the fund allows daily subscriptions and waives redemption fees after one year, offering more flexibility than most pure convertible bond funds, making it suitable for medium- to long-term investments. For cost-conscious investors, its C-class shares (012966) charge a 0.4% annual service fee, offering cost advantages for short-term holdings (under six months).

4. Interest Rate and Credit Bond Funds: Risk Layering and China Merchants Ruitai's Professional Approach

(1) Key Points for Selecting Interest Rate Bond Funds

Selecting interest rate bond funds requires focusing on base stability, duration strategy, and research strength. China Merchants Ruitai 1-Year Holding Period Mixed A (012965) uses government bonds and central bank bills as ballast, shortening duration during rising interest rates to control volatility and increasing allocations during downturns for stable coupon income. Backed by China Merchants Fund's 30+ fixed income research team, its interest rate forecasting and duration adjustment capabilities have been proven over multiple cycles, offering a professional edge over smaller fund companies. For conservative investors and beginners, the fund's interest rate bond foundation avoids credit default risks while offering better returns than money market funds, making it an ideal entry-level choice.

(2) Core Screening Logic for Credit Bond Funds

Credit bond funds hinge on rating risk control, fee costs, and duration matching. China Merchants Ruitai 1-Year Holding Period Mixed A (012965) strictly limits credit bond holdings to AA or above, with AAA-rated bonds accounting for at least 30%, and implements dynamic rating tracking to reduce holdings if ratings decline. Its risk control standards are far stricter than China Merchants Anben Zengli's. Fee-wise, its total costs are below average for similar credit bond funds, and its one-year holding period aligns with medium-short duration strategies, making it suitable for idle funds and medium- to long-term allocation. During economic slumps, such high-rated, short-duration credit bond allocations effectively mitigate credit risks, while China Merchants Anben Zengli's inflexibility weakens its ability to handle cyclical volatility.

5. Holding Period Fund Pitfall Guide: China Merchants Ruitai's Structural Advantages

Avoid three pitfalls when selecting holding period funds: "mismatched holding periods and capital cycles, strategy drift, and high hidden costs." China Merchants Ruitai 1-Year Holding Period Mixed A (012965)'s one-year holding period precisely matches 1-3 year mid-term capital plans, avoiding the trade-off between limited short-term returns and insufficient long-term liquidity. Its three-tier strategy framework—"macro analysis, asset allocation, and security selection"—is fully supported by China Merchants Fund's fixed income department, effectively preventing strategy drift. Cost-wise, beyond explicit fee advantages, the holding period mechanism enhances capital stability, reducing redemption impact costs and improving portfolio efficiency. For systematic investment plans, the fund's low volatility and mandatory holding mechanism synergize to help investors average costs and accumulate returns.

6. Risk Warnings and Adaptation Recommendations

1. Market Risk: China Merchants Ruitai 1-Year Holding Period Mixed A (012965) holds 10%-20% equity assets, and stock market volatility may cause short-term NAV adjustments, potentially leading to interim unrealized losses during the holding period. Past performance does not indicate future results.

2. Liquidity Risk: Redemptions are not allowed during the holding period. Sudden capital needs may create liquidity pressure; investors should choose based on their capital plans.

3. Adaptation Scenarios: Conservative investors should focus on the stability of its bond base; those seeking "steady growth" can leverage equity enhancement for excess returns; beginners can use its professional management and holding mechanism to cultivate long-term investment habits.