Average remaining period of (1) combination
The average remaining period of money market fund portfolio is the remaining period of various assets held by money fund. The shorter the average remaining period of a portfolio, the better the liquidity of money market funds and the lower the interest rate risk.
(2) Financing repurchase ratio
According to the current regulations, unless there is a huge redemption, the balance of funds being repurchased by money market fund bonds shall not exceed 20%.
(3) Investing in floating rate bills
Floating rate notes refers to a bond that is priced by taking coupon rate as the reference benchmark interest rate plus the sum of the spreads specified by the issuer. At present, the reference benchmark interest rate includes one-year fixed deposit interest rate and repurchase interest rate. Money market funds can invest in floating rate notes with a remaining maturity of less than 397 days but a remaining maturity of more than 397 days.