Cargo-based enhanced version of short-term debt funds to find out?

“Cargo-based enhanced version” of short-term debt funds to find out?

Source: Head of Investment 2 Original title: “Cargo-based enhanced version” of short-term debt funds

  What is a short-term debt fund?

What is the difference between short-term debt funds and money funds?

Is idle money financing a money fund or a short-term debt fund?

Let us talk to you in detail.

  What is a short-term debt fund?

  Short-term debt funds are a special type of pure debt fund products. Such pure debt funds mainly invest in bonds with term maturities and money market assets, and their portfolio duration is usually within 3 years.

  Because of the long-term return of the investment bond portfolio, it is called a short-term debt fund, which corresponds to a medium- and long-term pure bond fund.

  Following the length of the investment bond portfolio, it can be further divided into ultra short bonds, short bonds and short and medium bonds: ultra short bonds: bond portfolios generally have a duration of less than 270 days.

  Short-term debt: The duration of the bond portfolio is generally 0.

5-1 years.

  Short-term debt: The duration of the bond portfolio is 1-3 years.

  Short-term debt funds focus on the positioning of “currency enhancement” or “financial replacement”. Its overall returns are worse than those of medium and long-term pure bond funds, but slightly better than those of money funds.

  It is suitable for customers with low liquidity requirements and investment periods of 3-6 months.

  What is the difference between short-term debt funds and money funds?

  First, short-term debt funds have similar investment scopes as money funds, but short-term debt funds have a wider investment scope. They can invest in credit bonds with qualifications slightly lower than those of money funds, but with higher yields than money funds.

  Second, the average remaining maturity of short-term debt fund portfolios is more lenient. The remaining maturity of money fund portfolios is a maximum of 120 days, while short-term debt funds have no limit, and their duration is usually longer than that of money funds.

  Third, the short-term debt fund has the highest leverage ratio, the maximum leverage of the money fund is 120%, and the short-term debt fund can be up to 140%.

  Fourth, funds are estimated in different ways. Monetary funds are estimated using the amortized surplus method, while short-term debt funds are estimated using the market value method.

  Therefore, the investment risk and return of “short-term debt funds” are higher than those of currency funds and lower than those of ordinary bond funds, which are characterized by risks, high liquidity and stable returns.

  Buy cargo base or buy short debt?

  Whether it is a money fund or a short-term debt fund, they are relatively stable financial products. How to choose depends mainly on your requirements for liquidity and income.

  From the perspective of liquidity: unexpected expenditures may occur at any time in life, and some flexible funds are needed.

  The money fund is the best liquid investment tool in the market. The investment gate has low biology, no transaction fees, and high safety factor.

  Some of the goods-based orders that implement the fast redemption function have a daily fast withdrawal limit of 10,000, flexible withdrawals, and T + 0 real-time credit.

  Most short-term debt funds also support zero subscription fees, flexible trading, and refunds back to T + 1.

  However, the redemption is held for less than 7 days, but it is to be collected1.

5% high redemption fee!

  Generally, short-term debt funds can waive the redemption fee only after holding for 30 days after the ownership is confirmed.

  This is also to encourage investors to participate in short-term debt fund investments at least monthly.

  The money fund is indeed irreplaceable in financial accounting. In terms of liquidity, the money fund is even better.

  From the perspective of income: short-term debt funds do have a stronger yield than currency funds, and short-term debt funds have a slightly better return.

  Monetary Fund and Short-term Pure Bond Fund Index Yield Trends Since 2019 (Data 杭州夜网论坛 Source: Wind, as of December 18, 2019) In summary, if it is living expenses, pocket money and other funds that require high liquidity, currencyfund!

Arrange it!

  If it is a medium-to-long-term living security fund or wealth management fund, then you are worth having a short-term debt fund?