Money funds are mainly used to gather idle funds, which are operated and managed by fund managers. Fund custodians are usually open-end funds that are kept by banks.

Five characteristics of monetary fund

A high security, the money fund mainly invests in the money market, and the main investment scope is cash, bank deposits, certificates of deposit, government bonds, etc.

Second, the liquidity is high, and the money fund can be purchased and redeemed at any time, which is not affected by holidays.

Third, the income is stable, the income of the money fund is mainly stable, and the residual income rarely fluctuates widely.

Fourth, the subscription threshold is low, and the subscription threshold of money funds is low, so starting from one yuan can be said to be the lowest subscription threshold among all funds.

Five, the buying and selling rate is zero, and the money fund subscription or redemption rate is zero, which can improve the income of the holder.

Buying skills of money fund

Monetary fund products are too large on the basis of moderate scale, or the income is reduced due to the increase of management and operation expenses, and the scale is small, which is responsible for not having enough capital to negotiate with banks and obtain higher income. Therefore, money funds with moderate capital scale can impact higher returns.

The longer the money fund is listed, the richer its experience in operation and investment, so it is wise to establish a stable money fund with long time and superior performance.

It is best to have the highest proportion of money funds held by individuals, because only in this way will the size of money funds be relatively stable. If the institutional shareholding or internal shareholding ratio of the Monetary Fund is too large, once the institution withdraws, the Monetary Fund will be forced to sell its assets under the condition of insufficient liquidity at its primary level, which will have a great impact on the performance of the Monetary Fund.