1, what is a money fund?

Monetary fund is an open-end fund. According to the types of financial products invested by open-end funds, people divide open-end funds into four basic types: stock funds, hybrid funds, bond funds and monetary funds. The first two belong to the capital market, and the latter is the money market. Monetary funds mainly invest in short-term financial products with high security, such as bonds, central bank bills, repurchase, etc. , also known as "quasi-savings products". Their main features are "worry-free principal, convenient demand, regular income, daily income and monthly dividend". In general, the probability of investors' profit is 99.84%; The expected rate of return is between 1.8-2%, which is higher than the interest of one-year time deposit 1.8%, and there is no interest tax; It can be redeemed at any time. After applying for redemption, the funds will generally arrive the next day, which is very suitable for units and individuals pursuing low risk, high liquidity and stable income.

2. What's the difference between money funds and other open-end funds?

Compared with other funds, monetary funds have the following characteristics:

The main difference between money funds and other funds that invest in stocks is that the net asset value of a fund unit is fixed, usually 65,438+0 yuan per fund unit. After investors invest in this fund, they can reinvest with the proceeds, and the investment income will accumulate continuously to increase the fund share owned by investors. For example, investors can own 100 fund shares if they invest 100 yuan. After 1 year, if the return on investment is 8%, the investor will have 8 more fund shares, totaling 108, with a value of 108 yuan.

The standard to measure the performance of money funds is the rate of return, which is different from other funds that make profits by increasing their net assets.

The money fund has good liquidity and high capital security. These characteristics are mainly due to the fact that the money market is a low-risk and high-liquidity market. At the same time, investors can transfer fund shares at any time as needed, regardless of the date.

L the risk of money fund is low. The maturity of money market instruments is usually very short, and the average maturity of money fund portfolio is usually 4 ~ 6 months, so the risk is low, and its price is usually only affected by market interest rate.

The investment cost is low. Money funds usually don't charge redemption fees and have low management fees. The annual management fee of the money fund is about 0.25% ~ 1% of the fund's net asset value, which is lower than the traditional annual management fee 1% ~ 2.5%.

Money funds are all open-end funds. Money funds are usually regarded as risk-free or low-risk investment tools, which are suitable for short-term capital investment in emergencies to earn interest, especially in the case of high interest rate, high inflation rate, reduced liquidity of securities and reduced credibility, which can avoid the loss of principal.

3. What are the investment targets of the Monetary Fund?

A money fund is a fund that invests in money market instruments. Mainly invest in the following financial instruments:

A) cash;

B) Bank time deposits and certificates of deposit within one year (including one year);

C) Bonds with a remaining maturity of less than 397 days (inclusive);

D) bond repurchase with a term of less than one year (including one year);

E) Central bank bills with a maturity of less than one year (including one year);

F) Other money market instruments with good liquidity recognized by China Securities Regulatory Commission and China People's Bank.

4. Is there a time limit for the money fund, if it is redeemed in the middle of a few days?

Monetary fund is a fund that can be purchased and redeemed at any time except statutory rest days, and there is no time limit. Fund companies generally stipulate the redemption of shares, and the receipt of funds is 2 trading days (T+2 days).

5. The practical advantages of the Monetary Fund.

1) Increase the income of current savings. At present, the average income of the money fund is about 1.8%, which is 0.58% higher than the bank's current savings rate (after-tax income).

2) The practice of carrying forward income on a monthly basis provides compound interest income that cannot be provided by bank deposits at present.

3) In the rising stage of interest rate, effectively avoid interest rate risk. The increase of interest rate provides a higher-yielding investment variety for the money fund. It can be said that the income of the money fund rises with the increase of interest rate. This has been proved before and after the interest rate increase of 2004. 10/0 in 2004.

6. How to buy a money fund? Is there a charge?

There is no handling fee for the subscription and redemption of money funds. It can also be said that the money fund is an open-end fund and does not charge any fees. It is recommended to buy in a securities company for the following reasons:

1) Buying a money fund is an investment behavior, not a saving behavior. Buying funds in securities companies can get professionals to provide you with the most timely superior varieties and the most accurate investment portfolio, so as to maximize your income;

2) The advanced "fund supermarket" system of individual securities companies can sell all domestic funds on a commission basis, and the one-stop service has changed the original mode that customers can only go to specific banks to buy different funds, reducing the risk of funds and handling procedures;

7. How to obtain the daily income of the Monetary Fund?

You can inquire through the websites of relevant financial and fund management companies, or through agency outlets.