What is a short-term bond fund?
Short-term bond funds refer to financial bond funds with a relatively short operating cycle, usually one week, two weeks, one month, one quarter or half a year.
Financial bond funds emphasize the return to the origin of fixed expected annualized expected return products, with low risk, stable expected annualized expected return and absolute return as the investment concept. The investment targets are mainly bank time deposits, large deposit certificates and short-term financing bills. Short-term debt funds mainly invest in the inter-bank bond market, which has the advantages of both bond funds and money funds. It is a fund product with expected annualized income higher than that of money market funds, stable net growth and equivalent liquidity.
Features:
1. Liquidity has obvious advantages over bank wealth management products.
At present, short-term bond funds issued in China's market all have contractual open-end funds with fixed closed period, closed fund operation and rolling existence at maturity. The closed operation period ranges from 14 days to 90 days (with the issuance of subsequent products, the period will be enriched continuously), and the overall liquidity is better than that of half-year and one-year time deposits. In addition, because the short-term financial bond fund has the characteristics of automatic extension when the product expires, investors can continue to invest after the product expires, thus avoiding the opportunity cost of finding new products when the product expires.
2. The operation mode determines the expected annualized expected rate of return.
The investment scope of short-term bond funds is mainly concentrated in the money market, including cash, call deposits, bank time deposits and certificates of deposit within one year (including one year), bond repurchase with a maturity of less than one year (including one year), bonds, asset-backed securities and medium-term notes with a remaining maturity of less than 397 days (including 397 days) with a maturity of less than one year (including one year). On the whole, the Fund has certain restrictions on the remaining term of investment products, which requires higher risk rating and less risk, and the expected annualized expected return due can be expected; Considering that the Fund uses the valuation method adopted by money market funds-cost amortization method to value the investment varieties, this ensures that the net value of fund shares can grow steadily; Therefore, short-term bond funds have the characteristics of low risk and expected annualized expected return.
Compared with money funds, short-term bond funds:
1, short-term bond funds have good liquidity: zero commission, and redemption money T+2 is received;
2. Short-term bond funds have low risk: the credit rating of investment products is high, and the expected annualized expected income is evenly shared every day, which is less affected by market price fluctuations.
Short-term bond funds not only have the advantages of bank wealth management products and money funds, but also have wider investment scope and fewer investment restrictions than money market funds; Compared with bank wealth management products, the operation is more transparent, the expected annualized expected income is stable and predictable, and it has obvious competitive advantages compared with bank deposits. The product design is simple and easy to understand, and the overall advantages are extremely obvious. Short-term financial bond fund fills the gap of this kind of products in the capital market, which is the product of the expected annualized interest rate marketization process, and provides a more suitable investment and financial management tool for low-risk investors who don't want to bear the fluctuation of net worth.
investment strategy
1, investors should choose according to their own liquidity needs.
If the liquidity requirement is high, you should choose the money market to withdraw funds;
2. Choose the appropriate expected annualized expected rate of return.
Short-term wealth management products are basically low-risk varieties, and the expected annualized expected return is low, but there are also differences between varieties. Generally speaking, "high risk and high expected annualized expected return", the varieties with higher expected annualized expected return are relatively more risky.
3. Risk comparison
In addition to the comparison of liquidity and expected annualized expected rate of return, investors should also consider the comparison of redemption rate and the screening of potential risks.
4, the choice of bond companies
From the experience, the debt base of a fund company with a strong team of fixed expected annualized expected returns often stands out. As the largest bond fund management company in China, ICBC Credit Suisse Bank won the "Best Bond Management Company Award in China" in Asia Asset Management 20 13, the authoritative industry magazine of asset management in Asia.
5. Regular open-end funds have a net redemption ratio limit.
Regular open pure debt funds mainly invest in products with fixed expected annualized expected returns, and do not participate in new shares and issuance, nor directly buy stocks, warrants and other assets from the secondary market. There are 1 limited redemption applications every quarter and 1 free entry and exit every year, effectively resisting the three weaknesses of traditional closed-end or fixed-term open-end funds, such as poor liquidity, excessive capital inflow and dilution.