1. Dividends for short-term debt funds refer to the fact that the fund distributes part of the income to fund investors in cash, which was originally part of the net value of the fund unit. Dividends are not for making more money, but for changing the way of investment. There are two kinds of dividends, one is cash dividend and the other is dividend reinvestment. The former is to directly return the dividend money to you. In the case of the same fund share, the net value of the fund will decrease and the investment cost will decrease, but the total amount of funds will not change. The latter is to buy funds with dividend money. Only when the investment cost remains unchanged, the fund share increases, the fund net value decreases, and the total amount of money remains unchanged. All short-term debt dividends will be deducted.
2. Short-term debt funds are named after the short term of bonds invested. The investment scope is limited to bonds, central bank bills and other fixed-income varieties and bank deposits, and stocks and convertible bonds are not invested. Short-term debt funds mainly invest in the inter-bank bond market, which has the advantages of both bond funds and money funds. This is a fund product with higher income than money market funds, steady growth in net value and considerable liquidity.
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