Money funds mainly invest in money market instruments, such as central bank bills, short-term government bonds, corporate bonds, commercial bills, bank time deposit certificates, etc. The risk of these products is very low, so the risk of money funds is very low, and there is basically no possibility of principal loss. It should be noted that although the risk of the money fund is relatively low, it is not a capital preservation product, and it will not promise to protect the capital when the product is raised.

Monetary fund has the characteristics of low risk, stable income and high liquidity, and is more suitable for investors with low risk tolerance and high liquidity requirements.