Simply put, it is the same financial management tool as current savings, which can be accessed at any time, but the potential income is higher than that of bank current savings.
Then, you may be confused. Are these products with high returns from investing in central bank bills? Why can't we invest ourselves and hand it over to the fund manager? This is because the financial instruments invested by fund managers are generally very large, and it is difficult for ordinary people to participate directly.
For example, when the bank was particularly short of money at the end of the year, Uncle Wang went to the bank with 50,000 yuan and said, "I heard that you are short of money recently. I have 50 thousand yuan here to lend you for one month, as long as the interest is higher than the one-year time deposit. " Do you think the bank will raise interest rates because of 50 thousand yuan? Obviously not. What is 50 thousand?
However, the fund manager of the money fund is different. Then he went to the bank and said, "I have tens of billions of money to lend you, but the interest is also relatively high." We can discuss how high it is. How come? " Although the bank is very reluctant, it is really difficult to get a large amount of money, and it can only be agreed. The interest earned will first remove the fees charged by the fund itself and the bank's custody fee. After all, people's fund companies and banks also have to eat. The rest of the income will be returned to investors.
Therefore, the allocation of money funds is equivalent to crowdfunding. You pay tens of thousands, I pay hundreds, and everyone collects the money and gives it to the fund manager to hold central bank bills, government bonds and so on. Get considerable benefits.