Money market funds refer to investment funds that invest in short-term securities in the money market. The assets of the Fund are mainly invested in short-term monetary instruments, such as treasury bills, commercial bills, bank time deposit certificates, bank acceptance bills, government short-term bonds, corporate bonds and other short-term securities.

There is only one way for money funds to pay dividends-dividends are transferred to investment. Each money market fund is always maintained at 1 yuan. If it exceeds 1 yuan, the income will be automatically converted into fund shares on time, and you will have as many assets as you have fund shares. Other open-end funds have fixed shares and accumulated net unit value, and investors can only rely on the annual dividends of the fund to realize their income.

Money market funds not only have the characteristics of stable income, strong liquidity, low subscription limit and high capital security, but also have other advantages, such as issuing checks and paying consumer bills with fund accounts; It is usually used as a place to temporarily store cash before making new investments, which can earn more income than demand deposits and can be withdrawn for investment at any time.

Some investors subscribe for money market funds in large quantities and then gradually redeem their investment stocks, bonds or other types of funds. Many investors also hold cash in the form of money market funds for emergencies. Some money market funds even allow investors to withdraw funds directly from ATMs.