What is a money fund? What is the definition of money fund? How to calculate the income of the money fund? The following small series will tell you.
The concept of monetary 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". The principal of the Monetary Fund is relatively safe, and the expected annual rate of return is 1.9%. It is suitable for liquid investment tools and a substitute for savings.
Definition of monetary fund
Money funds only invest in the money market, such as short-term government bonds, repurchase, central bank bills, bank deposits, etc. And there is basically no risk. Its liquidity is second only to bank demand deposits, and its income is calculated every day. Generally, the one-month income is carried forward to the fund share, and the income is slightly higher than the one-year time deposit, and the interest is tax-free. The principal of the Monetary Fund is relatively safe, with an expected annual rate of return of 3.9%. It is suitable for liquid investment tools and a substitute for savings. In general, the probability of investors' profit is 99.84%; The expected rate of return is between 3.8-5%, which is higher than the interest of 3.5% for one-year time deposit, 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.
The unit net value of the money fund is always 1 yuan, and the income is distributed every day (fluctuating and different every day). Its income distribution is announced in the form of "income per 10,000 shares", such as "income per 10,000 shares", which means that the income per 10,000 shares of the Monetary Fund can be 0.4538 yuan today. "7-day annual rate of return" is the rate of return converted from the average income of the last 7 days to one year.
There is no daily net value of money funds, only "net income per ten thousand funds" and "7-day annualized rate of return", which is the actual income you get every day, and "7-day annualized rate of return" is a parameter to examine the long-term profitability of a money fund. The 7-day annualized rate of return is just a reference, which refers to the average income of the 7 days before today. There is no need to calculate your own income. Before choosing a product, you should look at the 7-day income and the income per 10,000 shares, especially the income per 10,000 shares. This is the most important indicator to measure the income of the money fund, and there is no one.
Most money market funds always have a face value of 1 yuan, and the income is calculated every day, and there is interest income every day. Investors enjoy compound interest, while bank deposits are only simple interest. For example, if you have 1 10,000 money funds, the net income of each 1 10,000 fund today is 0.7 188, which means that your income today is 0.7 188 yuan, and tomorrow's income should be added with today's interest as the principal: 10000.72 yuan, and then,