It is said to be "quasi-savings"

Now the deposit interest rate is lower than the inflation rate, and the deposit has been depreciating. There are 1000 oranges. I want to manage money, but I don't want to take too high risks.

In order to attract funds, banks have introduced large certificates of deposit with interest rates higher than the inflation rate. However,100000 or million is the minimum investment unit. I want to buy oranges, but I can't afford them.

At this time, a fund company said that you small investors have given me money, so that we have more money together, and the interest rate will be higher if we save together, so we launched a money fund to invest in this kind of large deposit certificate with higher interest rate.

[Birth of the Monetary Fund]197210/0. In October, the savings fund company bought $300,000 in high-interest time savings and sold it to small investors with $ 1000 as the investment unit. In this way, small investors enjoy the return on investment that only large enterprises can get, and at the same time have higher cash liquidity, and the first money market mutual fund in history was born.

Monetary fund

Monetary fund is an open-end fund that collects idle social funds, is operated by fund managers, invests in the money market and is kept by fund custodians.

Investment: short-term monetary instruments (generally within one year, with an average maturity of 120 days), such as treasury bonds, central bank bills, commercial bills, bank time deposit certificates, government short-term bonds, corporate bonds (with high credit rating), interbank deposits and other short-term securities.

It has high security, high liquidity and stable profitability. It has the characteristics of "quasi-saving".

Money market funds are natural havens, which can generally get higher income than bank deposit interest, but money funds can't guarantee the safety of the principal (but in fact, due to the nature of funds, the loss of the principal of money funds rarely occurs in reality. Generally speaking, money funds are regarded as cash equivalents. )

Product characteristics

1. Major securities

Generally speaking, money funds are regarded as cash equivalents.

2. Strong capital flows

Easy to buy and sell, short time for funds to arrive. Generally, the funds will arrive in a day or two after redemption. At present, some fund companies have opened the instant redemption business of money funds, which can be received on the same day.

3. Higher rate of return

Most money market funds are generally higher than the income level of bank deposits in the same period.

4. Low investment cost

Buying and selling money market funds is generally free of handling fees, and the subscription fee, subscription fee and redemption fee are all zero.

5. Dividends are tax-free

Most money market funds always have a face value of 1 yuan, and the income is calculated every day, and there is interest income every day. Investors enjoy compound interest, while bank deposits are only simple interest. Monthly dividends are carried forward as fund shares, and dividends are exempt from income tax.