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What is the exact pricing principle of money market funds?
Money fund is favored by investors because of its unique advantages of income equal to or higher than one-year fixed deposit and flexibility close to current deposit. "However, monetary funds are not bank deposits." Chongqing financial experts said that monetary funds are a cash management tool, and investors should adhere to the following principles when purchasing monetary funds.

First of all, we must adhere to the principle of "buying the old and not buying the new". "After a period of operation, the performance of a money fund can stand the test of the market. It will take time to test whether a newly issued money fund can achieve good performance." Chongqing financial experts said that the newly issued money fund still has a closed period, during which it cannot be redeemed, and its flexibility will naturally be limited.

Secondly, we should adhere to the principle of "buy high and buy low". Chongqing financial experts suggest that investors can check the ranking of the yield of money funds through relevant websites and try to choose high-yield money funds with the highest annualized rate of return.

Finally, we must adhere to the principle of "short is not long". Chongqing financial experts said that the money fund is a short-term investment and financial management tool, which is more suitable for managing liquidity, short-term funds or temporary funds whose use is difficult to determine at the moment; For medium and long-term funds of more than one year, investors should choose financial products with higher returns such as bonds and equity funds.