Money fund is one of many funds and the most common fund product. For example, Alipay Yu 'ebao and WeChat Coin Link are all connected with money fund products. Monetary fund has the characteristics of high liquidity, stability and low risk, and is the first choice for many investors to invest in funds. So can the money fund be held for a long time? Let's get to know each other.

Can money funds be held for a long time?

The money fund can also be held for a long time, because the income of the money fund is stable and the fluctuation is relatively small. For investors who pursue stable income, it is more convenient and convenient to hold money funds for a long time, and there will be no losses.

However, if investors have higher requirements for fund returns, then money funds are not suitable for long-term holding, mainly in two aspects, as follows:

1 Money funds need to collect custody fees, management fees and sales service fees. With the increase of holding time, the cost will also increase, so if the money fund is held for a long time, the expected return will decrease.

2 The expected income of the Monetary Fund shall bear interest on a daily basis, and the interest shall be included in the principal and compound interest. In this way, the advantages of holding money funds in the short term are very obvious. In the case of holding the money fund for a long time, the expected return is low.