Monetary fund is an open-end fund that collects idle social funds, is operated by fund managers and kept by fund custodians. It is a special investment tool in the money market with low risk. Compared with other types of open-end funds, money funds have the characteristics of high security, good liquidity and stable income.

What are the characteristics of money funds?

1, with good liquidity and high capital security. These characteristics are mainly due to the fact that the money market is a low-risk and high-liquidity market. At the same time, investors can transfer fund shares at any time as needed, regardless of the date.

2. Low risk. The term of money market instruments is usually very short, and the average term of money market fund portfolio is usually 4 ~ 6 months, so the risk is low, and its price is usually only affected by the expected annualized interest rate in the market.

3. The investment cost is low. Money market funds usually do not charge redemption fees and have low management fees. The annual management fee of money market funds is about 0.25% ~ 1% of the fund's net asset value, which is lower than the traditional annual management fee 1% ~ 2.5%.