The risks of short-term debt funds are mainly credit risk and interest rate risk, but most short-term debt funds invest in bonds with higher credit rating, and the credit risk is less than other bonds, but the fluctuation of market interest rate will affect the net value of short-term debt funds.

Is short-term debt fund suitable for long-term holding?

Short-term debt funds as a whole are more suitable for long-term holding. Especially in the context of the current exchange rate breakthrough, falling interest rates and declining commodity yields, stable investment products with relatively guaranteed returns are more popular. Short-term bonds are characterized by strong liquidity and small fluctuations in risk and return, which just meet the financial needs of low-and medium-risk investors and are more suitable for long-term investment and financial management.