Understand money market funds
Money market fund is a form in which a wealth manager puts money in a fund company through investment, and the fund company uses the money to invest to generate income, and then returns the principal and interest to investors. For example, when banks are operating, there may be a shortage of funds. At this time, fund companies can help banks solve the problem of capital turnover through investment.
Principles of choosing monetary fund
1. Balance between safety and yield: Generally speaking, the higher the yield, the greater the risk. There is definitely something wrong with a money fund that guarantees safety and high returns, so everyone should find a balance between safety and returns when investing.
2. Learn to understand the income data: the most common data you see on the product interface of the money fund are seven-day annualization and ten thousand-share income, in which the seven-day annualization reflects the long-term profitability of the fund, and the higher the seven-day annualization, the greater the potential of the fund; And 10000 share income refers to the actual income of 10000 yuan invested every day.
3. Important rules: No subscription on Friday and no redemption on Thursday.
How to choose a high-yield monetary fund
1. Choose a fund with a high proportion of retail investors. The higher the ratio, the safer the fund;
2. If you choose a medium-sized fund, the performance of large-scale fund income is usually not satisfactory. For example, the recent yield of Yu' ebao is very low;
3. At the end of the month, the end of the season or the end of the year, the funds in the market will be relatively tight, so the yield of the money fund at these time points will be relatively high, which is the best time to buy.