So, what's the difference between money funds?

Let's take a look today.

Related question and answer: What does the money fund mean? 3 minutes to show you the money fund! The money fund is famous for its balance treasure, but what does the money fund mean? I found that many friends can't answer this question, so I will give you a good analysis of the meaning of the money fund today, so that everyone can thoroughly understand what kind of financial products the money fund is. What does money fund mean? Meaning: The main function of money funds is to gather idle funds, which are operated and managed by fund managers and kept by fund custodians (usually banks). Five characteristics of the money fund 1, high security: the money fund mainly invests in the money market, and its main investment scope is cash, bank deposits, certificates of deposit, national debt, etc. 2. High liquidity: Monetary funds can purchase and redeem at any time, which is not affected by holidays. 3. Stable expected return: The expected return of the money fund is mainly stable, and the expected return rarely fluctuates greatly. 4. Low subscription threshold: the subscription threshold of money funds is as low as 1 yuan, which can be said to be the lowest among all funds. 5. Zero-rate trading: the subscription or redemption of money funds is zero-rate, which can improve the expected income of holders. Money fund purchasing skills 1, moderate assets. Monetary fund products with moderate scale are the best. If the scale is too large, the expected income will be reduced due to the increase of management and operation costs. If the scale is too small, there is not enough capital to negotiate with banks to obtain higher expected returns. Therefore, money funds with moderate assets can impact higher expected returns. 2. The longer the listing year, the richer the experience in operation and investment. It is wise to hold a long-established money fund with high quality and stable performance. 3. It is best to have a high personal holding ratio in the money fund, because only in this way will the size of the money fund be relatively stable. If the institutional shareholding ratio or internal shareholding ratio of the money fund is too large, once the institution withdraws, the money fund will be forced to sell its assets under the condition of insufficient liquidity, which will have a great impact on the performance of the money fund. Now we all know what a money fund is! Although the expected income of the money fund continues to decline, its characteristics determine that it is still a good investment and financial management method. At the same time, the expected rate of return of different money funds is also very different, so it is better for everyone to choose the money fund with excellent performance as far as possible.