Money market funds refer to investment funds that invest in short-term securities in the money market. The so-called short-term, in layman's terms, generally refers to bonds due within one year.
Such as treasury bills, commercial paper, bank time deposit certificates, short-term government bonds, corporate bonds and other short-term securities. This kind of bond has high liquidity and stable income, which is a short-term investment for individuals. However, it is not very smooth for domestic individuals to directly invest in these varieties, so it is most convenient to use money market funds.
There is only one way for money funds to pay dividends-dividends are transferred to investment. Each money market fund is always maintained at 1 yuan, and the income exceeding 1 yuan will be automatically converted into fund shares on time, and how many assets it has (while other open-end funds have fixed shares and accumulated unit net value, investors can only rely on the annual dividends of the fund to realize the income).
In addition, money market funds do not charge subscription fees and redemption fees. The management fee is also lower (the management fee has been automatically deducted from the income you earn, so we can't see the action of collecting management fee).
Money market funds are highly liquid, and usually arrive in 2-3 working days when they are redeemed, which is faster than stock funds and bond funds. When you need to use funds, you should arrange the redemption time.
But remember not to subscribe for the money fund on Friday, because it starts to calculate the income on the second working day of subscription, that is, from next Monday, the weekend funds will be wasted.
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