Is there a handling fee for buying and selling money funds?
Investors buying and selling money funds do not charge subscription fees and redemption fees. So many people think that there is no handling fee for buying and selling money funds. In fact, there are fees for buying and selling money funds, which generally include fund management fees, custody fees and sales fees. Of course, the charging standard of each fund product is different, so there are differences, which are subject to the fund product manual.
Is the income of the money fund guaranteed?
Money fund is a financial product. Although the risk level is low, there are still some risks, so its income is not guaranteed.
1 systemic risk of bank bankruptcy
The probability of bank bankruptcy in China is very small, but this systematic risk still exists. Money funds that invest in bank time deposits are at risk of losing money if the bank fails and exceeds the limit.
2 Fund company's operational risks
Monetary fund managers may have the risk of centralized redemption and capital flight due to operational management and market reasons. This has an impact on the normal operation and stable income of fund companies.
3 Interest rate risk
For the purchase of investment products such as bonds, bond repurchases and bills, it will be subject to the risk of company default and downward interest rates. The principal loss of the money fund will only happen if two conditions are met at the same time, and the probability of these two extreme situations happening at the same time is very small.
First, the market yield rose sharply in the short term, which led to a sharp drop in securities prices;
Second, money funds are redeemed in large quantities at the same time, and bonds with falling prices cannot be held at maturity. After selling the bonds, it caused actual losses.
The above are some contents of the Monetary Fund, so you can pay attention to them.