Are all money funds guaranteed?
Money funds are not capital preservation, and there is no and no money fund in the market to make a capital preservation commitment. In the long run, the money fund does show the nature of capital preservation, but it also has negative returns.
The first loss-making money fund in China appeared on April 27, 2005, and the income per 10,000 shares of Penghua Currency A on that day was -0.2804 yuan;
On June 8, 2006, TEDA Monetary Fund earned -0.2566 yuan per 10,000 shares that day, becoming the second monetary fund to lose money.
The next day, on June 9, 2006, the income of E Fund was negative, and the income per 10,000 copies was -0.0400 yuan.
At that time, the reason for the negative income was that the reform of non-tradable shares began and new shares began to be issued intensively. Because the new income is much higher than the cargo base, there was a huge redemption on the cargo base that day. In order to cope with the large-scale redemption, fund managers had to sell their bonds, while the bond market was in a downturn and there was a loss.
It can be seen that in an unstable financial environment, the money fund will also have negative returns.
The above is about the content sharing of the Monetary Fund, and I hope it will help everyone.