Money market funds not only have the characteristics of stable income, strong liquidity, low subscription limit and high capital security, but also have other advantages, such as issuing checks and paying consumer bills with fund accounts; It is usually used as a place to temporarily store cash before making new investments, which can earn more income than demand deposits and can be withdrawn for investment at any time.

Some investors subscribe for money market funds in large quantities and then gradually redeem their investment stocks, bonds or other types of funds. Many investors also hold cash in the form of money market funds for emergencies. Some money market funds even allow investors to withdraw funds directly from ATMs.

Risks of money market funds

The risk of money market funds comes from the short-term bonds they invest in and the changes in market interest rates. When the market interest rate suddenly changes and the short-term bond interest changes, the fund fails to adjust in time, resulting in a decline in overall income. There is also the risk of competition from its own industry, and the calculation of its seven-day annualized rate of return is based on the most favorable price of the fund company in the income curve of the day. Causing the difference between quoted income and actual income.

These five classes will enable you to learn the fixed investment of the fund as soon as possible, pay attention to the official account of WeChat WeChat: notes on financial tips, and reply to the fund for free.