Can be purchased. The first feature of short-term debt funds is that they only invest in bonds, not in the stock market, including new shares and convertible bonds, and belong to pure debt funds. Its second feature is to invest in short-term bonds, that is, the remaining maturity of bonds is short, generally within 1 year.

The shorter the bond term, the lower the risk, so the risk of short-term bond funds is smaller than that of ordinary bond funds.

The expected rate of return of short-term debt funds is related to the bond market. When the bond market is bad, the short-term debt base may still lose money, but the loss is not big and the time is not long.

Short-term debt funds are named after the short-term bonds they invest in. 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.

In addition to the advantages of money market funds, short-term debt funds also have the following two characteristics: good liquidity: zero commission, redemption money T+2 to the account; Lower risk: the credit rating of investment products is high, and the income is shared equally every day, which is less affected by market price fluctuations.

The redemption of short-term debt funds usually arrives on T+2, so investors who have rigid demand for liquidity often choose money funds as cash management.

In 20 18, the Guiding Opinions on Further Regulating the Internet Sales and Redemption of Money Market Funds jointly issued by the Central Bank and the China Securities Regulatory Commission stipulated that the T+0 redemption withdrawal amount of the money fund should not exceed 1 10,000 yuan, which restricted the liquidity of the money fund and shortened the gap between the short-term debt base and the money fund.

On the other hand, since 20 18, the yield of money funds has continued to decline, further enhancing the attractiveness of short-term debt funds. Therefore, in the period when the stock market fluctuates and the interest rate of the bond market is low, short-term debt funds have become the choice of a large number of investors because of their strong liquidity and higher yield than money funds.

Although the short-term debt fund portfolio is short-lived, the bonds it holds still have the risk of default. When the bonds held by the fund default, investors may face reduced income or even loss of principal.

Interest rate risk. The portfolio of bond funds often includes not only credit bonds, but also interest rate bonds. When the market interest rate rises, the bond price falls, and the net value of the fund will also drop accordingly.

Liquidity risk. In the period when the stock market fluctuates downward, many investors will choose short-term debt funds to resist market fluctuations and obtain stable income. When the stock market turns better, funds that choose short-term debt funds to avoid risks may be redeemed in large numbers and re-enter the stock market, leading to fund managers selling bonds, bond prices falling, affecting fund returns and even leading to losses.