After the expected rate of return of the money fund declined, more and more investors began to turn to short-term debt funds which are also low-risk funds. The average expected return of short-term debt funds is slightly higher than that of money funds, but the risk is relatively high. How long will the short-term debt fund sell without losing money?

I. Expected income of the Fund

Short-term debt funds are limited to investing in bonds, central bank bills and other fixed expected income varieties and bank deposits, so the expected income from bond investment is the main source of profits for short-term debt funds.

Short-term debt funds are divided into short-term debt funds, short-term debt funds and short-term debt funds. The difference is that the remaining maturity of investment bonds is different. The remaining term of short-term debt fund is ≤397 days, and the remaining term of ultra-short debt fund is ≤270 days. The short remaining maturity of bonds means that bonds are less affected by interest rate fluctuations and the expected returns of bond funds are more stable.

Therefore, on the whole, the expected return of short-term debt funds is relatively stable, and the expected return of investment fluctuates little whether it is long-term investment or short-term investment.

Second, the fund transaction rate

Funds need to deduct certain transaction costs, including subscription fees and redemption fees, and short-term debt funds are no exception.

The same short-term debt fund can be divided into Class A and Class C according to different charging rules. Class A charges subscription fee and redemption fee, but not sales service fee, while Class C charges subscription fee but redemption fee and sales service fee.

The subscription rate is only related to the subscription amount and has nothing to do with the holding time, so the subscription rate will not change no matter how long the A-type short-term debt fund is held.

The redemption rate decreases with the increase of holding days. Generally, if it is held for less than 7 days, it will be charged, and the redemption fee can be exempted after reaching a certain period.

Therefore, from the perspective of fund transaction rate, it is recommended to hold it for more than 7 days before selling it.

The above information about how long the short-term debt fund can sell without losing money, I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.