What's the difference between short-term debt funds and money funds? The income of short-term debt funds is relatively stable, similar to wealth management products. Compare the differences between short-term debt funds and money funds in security, profitability and liquidity.

1, safe

The risk level of short-term debt funds is medium and low risk, which is higher than that of money funds. Compared with money funds, short-term debt funds can invest in bonds with longer maturities and hold a higher proportion of bonds, so the risks are higher and the money funds are relatively safe.

2. Yield

Compared with short-term debt funds, money funds have higher liquidity requirements for investment varieties, shorter bond maturities and lower returns, and the bond holding ratio is not as high as short-term debt funds, so the yield of money funds is generally lower than that of short-term debt funds.

According to statistics, the average yield of short-term debt funds this year is 3.89%, while the average yield of money funds is 2.68%. Obviously, the income of short-term debt funds is higher than that of money funds.

3. Asset liquidity

Short-term debt funds are not as liquid as money funds. Take the redemption time as an example, the money fund supports redemption at any time, and the redemption time is T+0 (quick redemption of baby financing) or T+ 1. However, the redemption time of short-term debt funds is generally T+ 1. If it is bought on a consignment platform such as Alipay or a bank, the redemption time will sometimes be later, which may be T+2 or T+3, depending on the transfer time of the bank. Therefore, the liquidity of money funds is better than that of short-term debt funds.