Monetary fund is an open-end fund that collects idle social funds, is operated by fund managers and kept by fund custodians. It is a special investment tool in the money market with low risk. Compared with other funds, it has the characteristics of low risk, good liquidity and stable income. Details are as follows:
Low risk: Money funds have the lowest risk among all fund types, so they are relatively safe. The fluctuation of the fund is very small, basically stable, and the loss of principal is very small, unless it is a special case of a major economic crisis.
Good liquidity: At present, the money funds of many fund companies can be 7*24 hours T+0 (real-time cash withdrawal), which is very convenient and can completely replace demand deposits, which is equivalent to enjoying regular income and has the convenience of demand. For example, change pass, balance treasure and current wealth all belong to money funds, which can be taken out and deposited at any time. Among them, change pass and Yu 'ebao can also be directly used for consumption, which is very popular with most people.
Stable income: Take change pass and Yu 'ebao as examples. So far, there has never been a negative return. Although the principal is not guaranteed, the income is still very stable.
Low threshold: the threshold of money funds is generally very low, and one yuan can be purchased. Take Alipay and WeChat as examples, you can buy them for one yuan.
We have some tips when buying money funds. Buying a money fund depends on the size of the fund. Generally, we should choose a monetary fund with moderate scale and slightly better operational ability, followed by the time of establishment. Generally, money funds with a long history and relatively stable performance are slightly better.