Monetary funds calculate compound interest on a daily basis. Monetary funds will generate income every day, and the income will become part of the principal.
Extended information:
Fund, English is fund, which broadly refers to a certain amount of funds established for a certain purpose. It mainly includes trust investment funds, provident funds, insurance funds, retirement funds, and various foundation funds.
From an accounting perspective, funds are a narrow concept, meaning funds with specific purposes and uses. The funds we mention mainly refer to securities investment funds.
Classification
Funds can divide securities investment funds into different categories according to different standards:
(1) According to whether fund units can be added or redeemed , can be divided into open-end funds and closed-end funds.
Open-end funds are not listed for trading (it depends on the situation). They are purchased and redeemed through banks, securities firms, and fund companies. The size of the fund is not fixed; closed-end funds have a fixed duration and are generally listed on securities exchanges. The exchange is listed and traded, and investors buy and sell fund units through the secondary market.
(2) According to different organizational forms, they can be divided into corporate funds and contract funds.
A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; it is established by the fund manager, fund custodian and investor through a fund contract, which is usually called a contract fund. . my country's securities investment funds are all contract funds.
(3) According to different investment risks and returns, they can be divided into growth, income and balanced funds.
(4) According to different investment objects, it can be divided into stock funds, bond funds, money market funds, futures funds, etc.
Fund form
It is not certain which was the earliest hedge fund. During the great bull market in the United States in the 1920s, there were countless such investment tools specifically for the wealthy. The most famous of these is the Graham-Newman Partnership fund founded by Benjamin Graham and Jerry Newman.
In 2006, Warren Buffett claimed in a letter to the Museum of American Finance magazine that the Graham-Newman Fund in the 1920s was the earliest hedge fund he knew of. But other funds are likely to emerge sooner.
During the economic recession of 1969-1970 and the stock market crash of 1973-1974, many early funds suffered heavy losses and closed down one after another.
In the 1970s, hedge funds generally specialized in one strategy, and most fund managers adopted a long/short stock model.
Hedge funds were once ignored during the recession of the 1970s. It was not until the late 1980s that the media reported several highly successful funds, and they returned to people's attention.
The bull market of the 1990s created a new class of wealthy people, and hedge funds blossomed everywhere.
Traders and investors pay more attention to hedge funds because they emphasize an income distribution model with consistent interests and an investment approach that "outperforms the market." In the next ten years, hedge fund investment strategies have emerged in endlessly, including credit arbitrage, junk bonds, fixed income securities, quantitative investment, multi-strategy investment, etc.
In the first decade of the 21st century, hedge funds once again became popular around the world. In 2008, the total assets held by global hedge funds reached US$1.93 trillion. However, the credit crisis in 2008 severely damaged hedge funds and their values ??shrank. Coupled with the obstruction of liquidity in some markets, many hedge funds began to restrict investor redemptions.