Amortized cost Bond Fund is an innovative product this year. After the release of the new asset management regulations, money funds will be transformed into net worth products in the future, and short-term wealth management funds will be strictly regulated. As a result, apart from the existing monetary funds and unreformed short-term financial management funds, the bond fund with amortized cost method has become the only one in Public Offering of Fund that can use amortized cost method, and it has also become a new breakthrough for fund companies to expand their business.

The amortized cost method means that the appraised object is listed at the purchase cost, amortized according to the real interest rate method at the coupon rate or agreed interest rate during its remaining duration, and interest income is recognized and impairment reserve is accrued. To put it simply, it is to calculate how much money you can earn when the bonds you invest in expire, and then spread the income evenly to confirm every day. Therefore, the net value of products does not fluctuate with the fluctuation of bond market interest rate, and the growth of net value curve is relatively stable.