What is a money fund?
Money fund is an open-end fund and the safest fund. It can be said that it is guaranteed. The most common money funds are Alipay's Yu 'ebao and WeChat's change pass. Monetary fund is also a fund. By gathering investors' funds for investment, the purpose of value-added can be achieved.
Monetary fund is an open-end fund that collects idle social funds, is operated by fund managers and kept by fund custodians. It specializes in investing in low-risk money market instruments, which is different from other types of open-end funds. It has the characteristics of high security, high liquidity, stable income and "quasi-savings".
Advantages of the Monetary Fund:
1, no loss, the nature of the money fund determines that it rarely loses its principal in reality and is regarded as a cash equivalent;
2. It is an open-end fund with strong liquidity and simple investment target, which can be bought and sold at any time with short confirmation time;
3. The income is good. The net rate of return of money funds can generally be compared with the interest rate of one-year fixed deposits, which is higher than the income level of bank deposits in the same period;
4. Dividends are tax-free, and monthly dividends are carried forward as fund shares, and dividends are exempt from income tax.
After reading the above introduction, I believe everyone has a deeper understanding of the money fund. Money fund is a fund that invests in money market instruments, also known as the king of cash management. Basically no loss, the only drawback is that the income is not very high.