Money fund is an investment tool managed by professional institutions, which mainly invests in short-term bonds, bank deposits and other money market tools. The income of money fund mainly depends on the level of market interest rate. At present, the general annualized rate of return of money funds is around 2%.

The main characteristics of the money fund:

Low risk: Money funds invest in short-term bonds and deposits for the purpose of capital preservation and interest protection, with low risk and relatively safe investor principal.

High liquidity: Money funds can usually be bought and sold at any time, and investors can withdraw funds at any time to meet personal liquidity needs.

Stable income: although the income of money fund is relatively low, it is still relatively stable compared with other investment tools.