Ultra-short debt is a way to make profits from investment. The operation mode of fund companies to make profits by investing in bonds with repayment period below 1 year is called ultra-short debt. Ultra-short bond investment usually ensures the safety of principal by controlling portfolio, which makes its assets have good liquidity, which can reduce the risk of fund net value fluctuation and obtain relatively stable income.

Characteristics of ultra-short debt

Ultra-short-term debt is a common tool in the international market. Because most of its investment amount will be invested in the money market, it can also be called ultra-short-term debt as an enhanced investment tool of money. Compared with other funds, its operation mode is to analyze the changing law of the whole market, select excellent fixed investment tools with a slightly longer term and higher returns, and then make appropriate leveraged investment. It is worth mentioning that, similar to the money fund, the subscription and redemption of ultra-short bonds do not charge extra fees. Because of its flexibility and good liquidity, it is also called "enhanced version of money market funds".