At present, most people's spare money is no longer deposited in banks, but is first placed in monetary funds. But in the face of so many varieties of income, how should we choose only the one with high income? Today, let's share some experiences after personal study.

First of all, it should be emphasized that the rate of return shown by money funds is generally seven-day annualized rate of return. Frankly speaking, now is not necessarily the time when the income is ahead, so don't blindly think that the high income will continue to be high.

Moreover, the reason why we choose the money fund is nothing more than the factors of low risk, strong liquidity and good income (higher than the deposit interest rate). Investing in stocks, we like to follow the main institutions, because the rise of stocks needs capital to promote. Retail investors use this small amount of money to pull a stock, which is simply sinking into the sea. Only when large funds enter the market can we eat some meat and drink some soup. The IMF can't do this. Big money is sensitive to market news, and money is tight and money will go in and out. If the money fund is mainly an institution, the short-term fluctuation may be relatively large, so it is best to choose fund holders with retail investors accounting for 60% to 70%, so the liquidity risk is relatively low. There is also the issue of income, which is related to the size of the fund. If it is too large, the income will be lower, and if it is too small, the risk and high income will not be guaranteed. Therefore, it is best to choose a medium-sized one of around 30 billion to 40 billion.

Finally, I want to talk about the tips of money fund trading. First, you can choose T+0 transactions with high liquidity, for example, Yu 'ebao can be redeemed on the same day; Second, when the funds are tight at the end of the season, the income will be higher; Third, not buying on Friday and not selling on Thursday can avoid losses on non-trading days on Saturday and Sunday.