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Recently, many investors are confused when looking at the available funds in their accounts - the stock market has fallen in a shrinking volume, and the Shanghai Composite Index has been hovering below 2,900 points for a long time; the bond market has adjusted back, and the national debt has fluctuated at a high level of 30; bank deposit interest rates have been cut, and the annual interest rate has reached the "1" era. Are there any products on the market that can steadily achieve the preservation and appreciation of family wealth?

After looking around, I think the only thing that can be called the last safe haven for funds is probably short-term bond funds.

Let’s first talk about the biggest feature of short-term debt: “stability”.

As a stable investment option, the past history of short-term bond funds can be described as as stable as an old dog. Regardless of whether the market is in a bear market or a bull market, regardless of whether the stock and bond markets are both falling or the bond market is alone, they have all achieved positive returns in the past 17 years. In other words, in the past 17 years, short-term bond investors have made profits every year. According to WIND data, from 2007 to the present, the average return of short-term bond funds has been above 3%, and they have achieved positive returns for 17 full years.

The second characteristic of short debt: “independence”.

It can also be seen from the 17 years of continuous positive returns that the correlation between short-term bond funds and the stock market is almost non-existent. According to WIND data, as of the end of 2023, the correlation between the short-term pure bond fund index and the CSI 300 Index in the past ten years was -0.04, showing a weak negative correlation. Adding short-term bond funds to the investment portfolio will not only reduce the overall risk of the portfolio, but also offset the drawdown of some stock assets. Although there is no advantage in profitability compared to stock funds and equity-oriented mixed funds, investors do not have to bear the risk of a maximum drawdown of nearly 50%.