With the deepening of people's understanding of financial investment, more and more people begin to pay attention to the investment of money funds. Monetary fund refers to an open-end fund with stability and liquidity as its main goal, fixed income as its main investment method and short-term bonds as its main investment object. So, what is the investment scope of the money fund?

1. Investment scope

Monetary funds mainly invest in short-term bonds, such as short-term bonds issued by the central bank, time deposits of commercial banks and national bonds. In addition, money market funds can also invest in short-term bills, short-term trusts, short-term bank certificates of deposit, policy financial bonds and so on. Generally speaking, the investment scope of the money fund is relatively narrow, but this is also the reason why it can ensure high security and liquidity.

2. Limitation of investment scope

In order to ensure the security and liquidity of money funds, fund managers have certain investment scope restrictions. First of all, the single credit risk investment of the monetary fund portfolio shall not exceed1%; Secondly, the proportion held by each issuer shall not exceed 20%; Finally, coupon rate shall not be lower than the interbank offered rate for the same period. These restrictions can ensure the investment security, liquidity and stability of the money fund, thus attracting more investors to join.

3. Investment income

The money fund's income mainly comes from the fluctuation of bond interest and par value in its portfolio. Although the monetary fund's income is relatively stable, its income level is affected by the market interest rate, and the interest rate fluctuation is unpredictable. Therefore, the income of the money fund is relatively stable, but it will not be too high.

To sum up, the investment scope of the money fund is relatively narrow, mainly investing in short-term bonds and other fixed-income products, and the investment scope is also relatively strict to ensure its safety and liquidity. Its income is relatively stable, but there is also uncertainty of market interest rate. Therefore, investors should choose their own monetary fund products according to their own needs and risk preferences.