The characteristics of the money fund itself determine that it is more suitable for managing liquidity, short-term funds or temporary funds. For medium and long-term funds of more than one year, according to market conditions, such as stock funds and index funds, you can choose to buy wealth management products with higher expected returns. In a bear market, the money fund is a good "safe haven".

When we choose a money fund, we often don't look at the expected return of more than 4%. We just put the money there temporarily and haven't made an investment choice yet. After making an investment choice, we can easily invest in the fund we want to invest in.

Coupled with the 1 minute "artifact", such as buying a piggy bank, putting money in the piggy bank (buying a money fund) and taking it out immediately after making other investment decisions, it has become the choice of many investors. Especially for people with large funds, although the expected income is not high, they can reap an extra expected income every day.

How to buy a money fund?

1, don't care too much about the expected return of the money fund.

Let's make a simple statistic: compare the best money fund and the worst money fund that have been operating for one year in recent years. The best is about 4% or 5%, and the worst is about 2%. In other words, you spent a lot of energy to choose a money fund, but the expected return gap between the two is not big.

2, choose a large or bank background.

As a product with fixed expected return, money funds usually adopt one-to-one price negotiation, usually the party with large amount of funds, with stronger bargaining power and higher expected return on investment. In order to cope with redemption, smaller money funds often hold a higher proportion of cash, so that the funds used for investment will be relatively small, and the expected income will be reduced, while larger funds are more capable of coping with large redemption, especially at the end of the year.

However, in some cases, there are exceptions. When the market interest rate changes, such as the central bank raising interest rates, smaller money funds will "turn around" and the expected rate of return will rise sharply.

In addition, it is worth mentioning that banks are monetary funds with inherent advantages, and the special shareholder background makes banks more advantageous in resources and talents. More than 90% transactions in the fixed expected return market take place in the interbank market. With the advantage of shareholders, banks are more familiar with fixed expected return transactions and generally can obtain better expected returns.