Did the short-term and medium-term debt base lose its principal?
Short-and medium-term debt funds may also lose their principal. On the one hand, short-term debt-based fund products, like other fund products, depend on the unit net value when buying and selling funds. Only when the fund is sold, the unit net value is higher than when it is bought, and investors are profitable. If the unit net value at the time of selling is lower than the unit net value at the time of buying, then the fund is losing money. On the other hand, short-term and medium-term debt funds themselves are non-guaranteed floating expected income products, and they do not promise to protect the principal, so the fund itself has the risk of principal loss.
In addition, the investment targets of short-term and medium-term debt funds are mainly bond funds, and the risks are also related to the types of bonds. If you invest in government bonds, the probability of principal loss is relatively small. After all, national debt is endorsed by national credit. If an enterprise issues corporate bonds or financial bonds, there is a certain credit risk. If the bonds invested by the fund are not paid on time, it will cause the investor's principal loss.
When investing in short-term debt funds, even if such funds have losses, they are mostly short-term losses, and the possibility of long-term losses is relatively small. The investment period of such funds is not very long, which means that the uncertainty of interest rate fluctuation will be lower and the income will be more stable.
In short, as long as all investments are risky, the risk degree of different fund products is different, and the short-term debt base will also have the risk of principal loss.