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What are the reasons for the improvement of the performance of the Monetary Fund?
Because of its good liquidity and high yield (generally higher than the one-year fixed deposit rate), money funds are deeply loved by investors and become an important cash management tool.

The liquidity and convenience of monetary funds are no less than demand deposits. Although there are theoretical differences in security, they can generally be ignored.

It is the general trend to change the money fund into demand deposit, which is also the starting point of interest rate marketization. If people want to rest and money doesn't rest, the money fund is a good helper.

The central bank has kept a tight balance of funds and pushed the interest rate center upward, which may last for some time.

Monetary fund is an open-end fund that collects idle social funds, is operated by fund managers and kept by fund custodians. It specializes in investing in low-risk money market instruments, which is different from other types of open-end funds. It has the characteristics of high security, high liquidity, stable income and "quasi-savings".

Due to the emergence of digital currency, a new type of money fund-virtual money fund has appeared in the field of money fund.