First, the principle of security and liquidity-choose a money fund with a high proportion of retail investors.

The most important thing to buy a fund is liquidity, that is, the ability to cash in at any time. Many people will follow the institutions and buy funds that many large institutions are buying, but the liquidity risk is relatively high.

For the institutional cargo base, the purchase and redemption are frequent. In most cases, retail investors are not very sensitive to changes in market interest rates. However, institutions are particularly sensitive to the tightness of funds. If the central bank puts a little water, there will be more money in the market, and institutions will buy a lot. However, if the market is short of funds, the institution will redeem it immediately. Large-scale institutions have a large amount of funds and frequent purchase and redemption, which has a great impact on the overall security and liquidity of the cargo base.

For example, in the 2008 financial crisis, the net value of the US Tier 1 reserve fund fell below 1 USD, and retail investors did not respond. At that time, most of the funds were held by institutions, and institutions immediately redeemed them on a large scale. The fund lost more than two-thirds in 24 hours, and was finally forced to liquidate, and the Fed injected liquidity to solve the crisis.

To judge whether a fund is a retail investor, we only need to look at its holder structure. If the proportion of retail investors in a fund reaches more than 70%, then its liquidity risk is very low. This kind of fund will not fluctuate too much even if the interest rate changes. Even if the proportion is relaxed a little, there will be no big problem when it reaches 60%. Therefore, it is necessary to choose funds with retail investors accounting for more than 60%.

Second, the principle of rate of return-choose a moderate-sized monetary fund.

When buying a fund, many people will think that they are too big to fail and choose a large-scale fund, but this is not necessarily true. It is found that the relationship between the rate of return on goods base and scale is inverted U-shaped.

In other words, the medium-sized cargo base has the highest rate of return, for example, the general rate of return below 5 billion is below 3.5%; If the scale is greater than 654.38+000 billion, the yield is 4.2% to 4.3%. But when it reached 654.38+00 billion, the rate of return came down, hovering around 4%.

The main product of money fund investment is bank agreement deposit, and the interest rate of agreement deposit is agreed by the fund and the bank. The scale of the fund is too small, there is no bargaining chip with the bank at all, and there is no way to get a good interest rate. However, the scale of the fund is too large. If a lot of money is used to buy this product, the price of this product will continue to rise, and it is difficult for a fund with too large a scale to obtain a good rate of return. Fund size 10 billion to 40 billion, with the highest rate of return. Therefore, the second principle of choosing the goods base is to choose the medium-sized money fund of 654.38+0 billion to 40 billion.

On the basis of liquidity and yield, some screening conditions can be added, such as funds with good historical performance and low handling fees. These data are published online.

According to these principles, the funds screened out every month will be different and can be adjusted according to their own needs. If you have a high demand for security, then sacrifice a little rate of return and choose a fund with a large plate, security and many retail investors like Yu 'ebao. If the rate of return is higher, liquidity can also be relaxed.