Money funds mainly invest in the money market. Once the financial order is chaotic, the money market will be the first affected area, so it will affect the money fund. Huge redemption: Huge redemption refers to the sudden and huge amount of money fund redemption. Once this happens, the bond price will fall, but the money fund needs enough cash to pay for the huge redemption.
So fund managers can only "sell bonds at a loss" at a lower price. Once the selling price is low enough, the money fund may lose money. Rising yield: A sharp rise in market yield in the short term will lead to a sharp drop in securities prices.
Extended data
Matters needing attention of the Fund are as follows:
1. Pay attention to the proportion of fund types according to your risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.
Be careful not to buy the wrong "fund". The popularity of funds has led to some fake and shoddy products "fishing in troubled waters", so we should pay attention to identification.
3. Pay attention to the later maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold.
4. Pay attention to buying funds and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.
5. Be careful not to "love the new and hate the old" and blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.
6. Be careful not to buy bonus funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.
7. Be careful not to talk about heroes by short-term ups and downs. It is obviously unscientific to judge the pros and cons of the fund by short-term ups and downs, and it is necessary to make a comprehensive evaluation of the fund in many aspects and conduct a long-term investigation.
8. Pay attention to flexible investment strategies such as steady and worry-free fixed investment, affordable and simple dividend conversion.
Baidu encyclopedia-fund
Baidu Encyclopedia-Monetary Fund