But this does not mean that there are no other expenses, including sales service fees, management fees and custody fees. These fees are very low and are deducted from the total assets of the fund and are not charged to investors.
The fees charged by each money fund may be different, but they are all kept at a very low level. The percentage here is the annual rate, which is calculated every day, accrued every day and paid regularly (for example, monthly). The above three expenses have been accrued before the fund's income distribution, so the published daily income per 10,000 copies is the actual income, and no additional fees are charged.
Extended data
Product characteristics
1. Principal security: Most money market funds have the lowest risk among all kinds of funds. Money fund contracts generally do not guarantee principal security, but in fact, due to the nature of funds, money funds rarely lose principal in reality. Generally speaking, money funds are regarded as cash equivalents.
2. Strong liquidity: liquidity can be comparable to demand deposits. The fund is easy to buy and sell, with short time to receive funds and high liquidity. Generally, the funds will arrive in a day or two after redemption. At present, some fund companies have opened the instant redemption business of money funds, which can be received on the same day.
3. Higher yield: Most money market funds generally have the income level of national debt investment. Money market funds can not only invest in investment tools that ordinary institutions can invest in, such as exchange repurchase, but also enter the inter-bank bond and repurchase market and the central bank bill market for investment. Its annual net rate of return can generally be compared with the one-year time deposit interest rate, which is higher than the income level of bank deposits in the same period.
Moreover, money market funds can avoid hidden losses. When there is inflation, the real interest rate may be very low or even negative. Money market funds can keep abreast of interest rate changes and inflation trends and obtain stable and high returns.
Refer to Baidu Encyclopedia-Fund Transaction Costs
Refer to Baidu Encyclopedia-Monetary Fund