1. What kind of money market fund is it?

2. How much does it cost to buy a money market fund?

3. Is it better to buy money market funds with high net worth or low net worth?

4. What are the advantages of money market funds compared with time deposits?

1. Money market fund is a low-risk investment product whose function is similar to bank demand deposit, but its income is higher than that of bank deposit. It provides individuals and enterprises with a relatively safe and stable investment method that can replace short-term and medium-term bank deposits; Moreover, it can not only provide the security of principal, but also bring some benefits to investors and have good liquidity.

liquidity: the liquidity of the money fund is very good, even better than the liquidity of the bank's 7-day notice deposit. The former can get funds by T+1 or T+2, while the latter needs T+7. Money funds have facilities similar to demand deposits. Redeem today (T day), and the funds will arrive at the account before 1 am tomorrow (T+1 day) at the earliest.

Monetary funds have certain restrictions on large redemption, and only 1% of the total fund can be redeemed every day. Buying a large-scale money fund can avoid this problem.

security: the money fund invests in short-term bonds, treasury bonds repurchase and interbank deposits, etc. The characteristics of investment types basically determine that the principal risk of the money fund is close to zero.

yield: the yield of money funds is much higher than that of 7-day notice deposits. The money fund has no subscription fee, subscription fee and redemption fee, only an annual fee, and the total cost is low.

2. Generally, the minimum amount of money required to purchase or subscribe for money market funds is 1 yuan, and the additional amount is an integer multiple of that of 1 yuan.

3. The net asset value of money market funds is fixed. Generally, one fund unit is 1 yuan, which is the main difference from other funds. After investing in money market funds, investors can reinvest with the proceeds, increase the fund share, and the investment income will continue to accumulate.

There are usually two indicators to reflect the rate of return of money market funds: one is the 7-day annualized rate of return; The second is the income per 1, fund units. As a short-term indicator, the 7-day annualized rate of return is only the information of the fund's profit level in the past 7 days, and does not mean the future income level. What investors really care about is the second indicator, that is, the income per 1, fund units. The higher this indicator is, the higher the investors will get real income.

4. Although money funds are called "quasi-savings", they are still different from savings.

First of all, the interest income from bank deposits is subject to 2% interest tax, but the income from holding money market funds can enjoy tax exemption policy;

Secondly, although bank time deposits have a high rate of return, their liquidity is insufficient. Although demand deposits can be accessed at any time, their after-tax interest is low, while money market funds have high liquidity and high returns.

Thirdly, bank deposits have a fixed interest rate, while money market funds have different daily returns as the daily market interest rate changes; Bank demand deposits are compounded annually, while money market funds are compounded daily.