Money market funds are referred to as money funds.

1. Money market investment scope: As the name suggests, money market funds are funds that invest in money market instruments

. According to the "Interim Provisions on the Management of Money Market Funds", the investment scope of my country's money market funds includes: bank time deposits and certificates of deposit within one year (including one year); the remaining period is within 397 days (including three years). One hundred and ninety-seven days) bonds; bond repurchases with a maturity of less than one year (including one year); central bank bills with a maturity of less than one year (including one year); other securities recognized by the China Securities Regulatory Commission and the People's Bank of China. A highly liquid money market instrument.

2. The main difference between currency funds and other funds that invest in stocks is that the net asset value of the fund unit is fixed at 1 yuan. For example, an investor who invests 100 yuan in a currency fund can own 100 fund units. After one year, if the investment return is 8%, then the investor will have 8 more fund units, for a total of 108 funds. Unit, value 108 yuan. The fund implements dividend reinvestment, so that the income continues to accumulate, increasing the fund shares owned by investors. 2. The standard for measuring the performance of money market funds is the rate of return. 3. Good liquidity and high safety. Investors are not subject to date restrictions and can redeem fund units at any time as needed. 4. Low risk. The maturity date of money market instruments is usually very short, and the average maturity of the investment portfolio is generally 4 to 6 months, so the risk is low, and its return rate is usually only affected by market interest rates. 5. Low investment cost. Money market funds do not charge subscription or redemption fees, and their management fees are also low. 6. Money market funds are generally regarded as risk-free investment tools, suitable for short-term investment of funds to earn interest, and cash for emergency needs is held in the form of money market funds.

For working class people who are busy with their careers, if they spend a certain amount of idle funds every month to buy money market funds, the compound interest returns accumulated over the long term will be considerable. At the same time, it does not occupy funds like stocks and bonds and can be converted into cash at any time. The turnaround time is only one or two days, which is very convenient. Therefore, money funds are also called "quasi-savings products" and have advantages such as capital preservation, regular income, and monthly dividends.

Monetary funds and RMB financial products have roughly the same investment scope, but are superior to RMB financial products in terms of safety, liquidity, flexibility, starting point, etc. After the interest rate rises, monetary funds can enjoy the benefits of rising interest rates; the current yield rate of RMB financial products is fixed. Even if the interest rate rises, the income obtained for the remaining period will not be calculated based on the adjusted interest rate, but will still be based on the adjusted interest rate. Calculation of previously established interest rates. Compared with RMB financial products, which all have lock-in requirements for a period of time, the liquidity of currency funds is a very prominent advantage of this product. Generally, RMB financial management cannot be redeemed in advance according to the agreement. If the investor has emergency needs for funds, he or she must submit a pledge application to the head office through the branch. The pledge rate is generally 70%, and the investor will also bear the interest on the pledge loan. Money market funds can be subscribed and redeemed at any time without charging any handling fees. After a redemption application is submitted, the funds are generally available within 2 days. In terms of flexibility, there are no other products for RMB financial management that can be converted into each other. Even if the same product has different maturities, there is no room for conversion. Currency funds can be interchanged with other types of fund products under the same fund company, allowing investors to capture other investment opportunities in the capital market in a timely and convenient manner while investing in the currency market. Usually the starting point for purchasing RMB financial management plans is more than 50,000 yuan; while the starting point for subscription of currency funds is 1,000 yuan, which has a lower investment threshold and is more suitable for ordinary people.

3: The income of money market funds: theoretically , Money market funds also have certain risks. There have been individual funds with negative returns on 10,000 fund units on individual days, but there has never been any money market fund on the 7th of a certain day. The annualized rate of return is negative. It can be said very clearly that money market funds have no risk of principal loss. It is just a question of the level of return.

There are two indicators that reflect the rate of return of money market funds: one is the 7-day annualized rate of return; the other is the income per 10,000 fund units. As a short-term indicator, the 7-day annualized rate of return is the average income of the previous 7 days, including the current day, multiplied by the number of days in a year to convert into an annual rate of return. It is the most intuitive indicator that reflects the performance of the fund and is easy to compare with savings income. Compare. But that is only the fund's profit level in the past seven days and does not mean future income levels. When examining this indicator, attention to return volatility cannot be ignored, because it reflects whether the fund's future return expectations are stable. Generally speaking, if the indicator fluctuates greatly, the investor's actual rate of return may be significantly different from the rate of return at the time of purchase. Income per 10,000 fund units refers to data that averages the daily operating income of a monetary fund to each unit, and then measures and compares it based on 10,000 units. The higher this indicator is, the higher the real returns investors will receive. Although bank fixed-term deposits have a higher rate of return, they lack liquidity. Once the deposit has not matured and money is needed, the interest can only be calculated on current deposits when withdrawing it. Although demand deposits can be deposited and withdrawn at any time, the interest rates are low. Money market funds have higher liquidity and higher returns.

It can be redeemed at any time. Generally, it will be available on the third day at the latest or the day after the redemption. Furthermore, bank demand deposits compound interest on an annual basis, while money market funds compound interest on a daily basis. For example, if you have 10,000 currency funds, and the net income per 10,000 funds today is 0.8000, that is, your income today is 0.8000 yuan, and your income tomorrow will be calculated based on the principal of 10,000.80 yuan. Income from currency funds is generally carried forward monthly. When redeeming, any earnings that have not been carried forward will be redeemed together.

To sum up, it can be seen that money funds "earn daily income and distribute dividends monthly."

Judging from past rules, the income of money funds is often closely related to the capital situation in the same period. If the short-term capital situation is very tight, the short-term income of money funds will suddenly increase. Judging from the monetary fund market situation in the first half of 2011, the 7-day annualized return rate of many products exceeded the 1-year fixed deposit interest rate, and even more exceeded the half-year fixed interest rate. If compared with the current bank current interest rate, it is 0.36%. , then, the money fund market easily wins. Generally speaking, the yield rate of money funds is roughly equivalent to the half-year bank time deposit interest rate.

Many currency funds are divided into Category A and Category B. The subscription starting point for Class A is 1,000 yuan, while the subscription for Class B is much higher, at least 5 million yuan, of which the Class A currency fund of China Southern Fund is 10 million yuan. Obviously, although the yield rate of Class B is higher than that of Class A, most individual investors cannot enter.

Suitable for long-term storage. If you are not in a hurry to spend money, you can hold it for a long time.