Monetary fund is an open-end fund financing tool. It mainly invests in short-term wealth management products with high security, such as bonds, central bank bills and repurchases. The principal of the money fund is relatively safe, and the expected annualized rate of return is 3.9%. Suitable as a substitute for liquid investment tools and savings.

1. The money fund is an open-end fund that gathers idle social funds, is operated by the fund manager and kept by the fund custodian, and is dedicated to investing in money market instruments, with low risk. Different from other types of open-end funds, it has the characteristics of high security, high liquidity, stable income and "quasi-savings".

2. The characteristics of the money fund: high security, high liquidity, stable income and "quasi-saving".

3. Product characteristics of the Monetary Fund:

(1) Principal security: Most money market funds have the lowest risk among all kinds of funds. Money fund contracts generally do not guarantee principal security, but in fact, due to the nature of funds, money funds rarely lose principal in reality. Generally speaking, money funds are regarded as cash equivalents.

(2) Strong liquidity: liquidity can be comparable to demand deposits. The fund is easy to buy and sell, with short time to receive funds and high liquidity. 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 generally have the income level of national debt investment. Money market funds can not only invest in investment tools that ordinary institutions can invest in, such as exchange repurchase, but also enter the inter-bank bond and repurchase market and the central bank bill market for investment. Its annual net rate of return can generally be compared with the one-year time deposit interest rate, which is higher than the income level of bank deposits in the same period. Moreover, money market funds can avoid hidden losses. When there is inflation, the real interest rate may be very low or even negative. Money market funds can keep abreast of interest rate changes and inflation trends and obtain stable and high returns.

(4) Low investment cost: Generally speaking, there is no handling fee for buying and selling money market funds, and the subscription fee, subscription fee and redemption fee are all zero, so it is very convenient for funds to enter and exit, which not only reduces the investment cost, but also ensures liquidity. For the first subscription/subscription, 1000 yuan, and for the second subscription, 100 yuan will be increased.

(5) Dividend exemption: Most money market funds always maintain the face value of 1 yuan, calculate the income every day, and earn interest 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.