Short-and medium-term debt funds were regarded as innovative products at the beginning of development in 2005. Because the investment period of bonds is longer than that of money funds, and the risks are considered to be similar to those of money funds, this feature makes short-and medium-term bond funds popular all over the country and highly sought after by investors. E Fund's short-term and medium-term debt-based monthly income has also achieved brilliant results with an initial scale of tens of billions. However, times have changed. Under the background of stock bull market, the low-risk and low-yield products have been abandoned by investors under the contrast that the annual return rate of stock funds is as high as 100%. In terms of security and liquidity, short-and medium-term debt funds are not as good as money funds, and their income is far less than that of equity funds. Short-and medium-term debt funds are increasingly ignored in front of them, and some funds have shrunk to 1 100 million yuan. In addition, in the context of continuous interest rate hikes by the central bank, bond funds need to constantly catch up with the benchmark rate of return. If the frequency or range of interest rate hikes is not low, it may become normal for bond funds to lag behind the benchmark within a certain period of time. At the same time, the special national debt issued by the Ministry of Finance also has a direct negative impact on the bond market. In this context, the short-term and medium-term debt base has been completely marginalized, and we have to start planning for transformation. At present, a number of short-term and medium-term debt funds, such as Southern Dolly Short-term Bond Investment Fund, have been transformed, expanding the original investment scope, modifying the restrictive clauses of not investing in stocks and convertible bonds, and extending their reach to stocks, convertible bonds, warrants and other fields to solve the current predicament.
The concept of "short-and medium-term debt" fund is mainly reflected in the duration of investment portfolio, which is controlled within three years and has corresponding constraints on the duration of investment bonds, which is different from ordinary bond funds.