What is a Fiduciary Bond?
Bond investment trust, also known as public bond investment trust. That is, a trust established with bonds as the investment object of a trust fund. Unlike stock investment trusts, bond investment trusts cannot invest in stocks. The main significance of distinguishing investment trusts into stock investment trusts and bond investment trusts is to make it easy for investors to understand the nature of investment in different trusts, and to judge the possibility and risk of different trusts.
Bond investment trust
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- 1. Bond investment trusts are issued monthly and there are many funds each year. In this way, the funds raised each month can be set up separately for each month. Dividends are paid once a year. If you do not want to withdraw cash, you can automatically switch to reinvestment, which can obtain compound interest. [1]
- This trust remuneration is generally 3.5% per year and is paid at the end of the accounting period. Among them, the compensation for the employee's construction plan and medium-term bonds is calculated based on the average net asset value, which does not exceed 2 , and the new government bond fund is 1.55 . [2]