Money fund is a very popular financial product, which has the characteristics of low risk, high liquidity and stable income. So is it cost-effective to buy a money fund? What is the impact on the income of the money fund? Xi Caijun also prepared relevant contents for your reference.

is it cost-effective to buy a money fund?

There is no absolute answer to whether the money fund is cost-effective. Investors can analyze it with reference to the following aspects:

1. Cost. The transaction costs of funds mainly include management fees, custody fees, subscription fees, redemption fees, etc. Generally speaking, the fees of money funds are relatively low, and even some money funds are exempt from subscription fees and redemption fees. Therefore, from the perspective of purchase costs, the cost performance of buying money funds is relatively high.

2. Revenue. Generally speaking, the income of money funds is relatively stable, higher than that of bank deposit interest rate, but the income potential is low. If investors demand higher liquidity, it is also a good choice to buy money funds, but if investors want to get higher returns, money funds may not be able to meet the demand.

3. Risk. Generally speaking, the risk of money funds is relatively low, because they mainly invest in short-term, low-risk, high-liquidity money market instruments such as bonds or deposits, and have perfect risk control measures, which are more suitable for investors with weak risk tolerance.

what is the impact on the income of the money fund?

1. central bank policy. The central bank's policy will affect the market interest rate, and interest income is the main income source of the money fund. When the central bank implements a loose monetary policy, it will lead to a decline in market interest rates, which in turn will affect the income of the money fund.

2. Economic situation. The economic situation has an important impact on the demand and supply of the money market, which in turn affects the income of the money fund. Generally speaking, when the economic situation improves, the demand for enterprise investment and personal consumption increases, and the demand for money in the money market is large, so does the income of the money fund.