According to the basic assets, funds can be divided into many types, mainly stock funds, hybrid funds and bond funds. Among them, short-term debt fund is a kind of bond fund, so is short-term debt fund risky?

Are short-term debt funds risky?

Short-term debt funds are less risky, slightly higher than money funds, but lower than other bond funds. From the perspective of income, the income of short-term debt funds is also slightly higher than that of money funds.

The risk of a fund is determined by its underlying assets. The investment scope of short-term debt funds is limited to short-term bonds, central bank bills and other fixed-income varieties and bank deposits, and does not invest in stocks and convertible bonds. Short-term bonds refer to bonds with short investment period (within one year).

As far as the investment market is concerned, short-term debt funds mainly invest in the inter-bank bond market, which is less risky than the exchange bond market.

As a bond fund, short-term debt funds naturally face credit risk and interest rate risk. The credit risk of short-term debt funds is smaller than other bonds, but the sharp fluctuation of market interest rate in the short term will also have a certain impact on the net value of short-term debt funds.