Their investment goal is to pursue higher liquidity and lower risk, which is suitable for investors to seek short-term capital preservation and appreciation.
Money market funds can usually invest in various short-term financial instruments, including but not limited to:
1. Demand deposits, time deposits and call deposits of commercial banks
2. Short-term bonds issued by government agencies, such as national debt and local debt.
3. Various short-term financial bills, such as discounted bills and bank acceptance bills.
4. Short-term monetary instruments issued by the central bank, such as China Development Bank bonds and central bank acceptance bills.