I. Short-term debt fund

Short-term debt funds are famous for their short bond maturities. The investment scope is limited to bonds, central bank bills and other fixed income categories and their deposits, and it is not allowed to invest in individual stocks and convertible bonds. Short-term debt funds mainly invest in the securities market in the inter-bank market, taking into account the advantages of bond funds and money funds. It is an asset management product with higher income than money market funds, continuous growth in net value and comparable liquidity.

Second, the monetary fund.

Monetary fund is an open-end fund that collects leisure assets for social development. It is operated by the fund custodian and kept by the fund custodian. From a professional point of view, it is a low-risk money market tool, which is different from other types of open-end funds and has the characteristics of high safety factor, high liquidity, stable income and "quasi-deposit".

Third, the difference between short-term debt funds and money funds.

1, company valuation method

The company valuation method of money fund is amortized cost method. For example, if the Monetary Fund invests in a bond, the loan interest of this bond will be shared and the income will be calculated every day. It is precisely because of this income that even if the bond price falls, the money fund will lose money in the short term, and the daily income will be positive, so investors have a full sense of belonging.

Short-term debt funds are different. The company valuation method is the market price method. The daily net value of short-term debt funds fluctuates, just like stock funds and stock funds. How much did my stock fund lose and earn today? I told investors that it is based on the daily net value of stock funds. Of course, when the bond pays interest at maturity, these gains are not easy to run, and then they are also included in the net value of the stock fund. Therefore, although the risk of short-term debt funds is not high, their short-term net value fluctuates and they will lose money.

2. Type of investment

Short-term debt funds generally invest in short-term bonds, with relatively high returns and large fluctuations. Money funds generally invest in money market instruments, such as deposits, certificates of deposit and China bonds. , while short-term bonds account for a relatively small proportion, with relatively low returns and small fluctuations.

3. Investment restrictions

There are fewer restrictions on investment in short-term debt funds, but more restrictions on the credit rating and component liquidity of money funds, which are the reasons for the greater security of money funds.

4. Risk income

Short-term debt funds are more risky and their returns fluctuate more. When the market interest rate decreases, the income of money fund decreases, the bond market is getting better and better, and the income of short-term debt fund increases. On the contrary, the income of short-term debt funds is not as good as that of money funds.

To sum up, the risk fluctuation of short-term debt funds is greater than that of money funds. When the bond market is good, you can choose short-term debt funds. Otherwise, choose the money fund.