Due to the emergence of digital currency, a new type of money fund-virtual money fund has appeared in the field of money fund. Also known as the digital currency Fund. For example: BlackRock digital currency Fund.
Money fund investment skills
The money fund is an open-end fund, which invests in the money market, mainly investing in bonds, central bank bills, repurchase and other short-term financial products with high security, and the longest term cannot exceed 397 days. Money fund income is generally higher than the bank's time deposit interest rate, which can be redeemed at any time and confirmed by T+2. Therefore, the money fund is very suitable for units and individuals who pursue low risk, high liquidity and stable income.
When buying money funds, we should adhere to the principle of "buying old money without buying new money, buying high money without buying low money, and shorting without doing much".
First of all, when buying money funds, priority should be given to the old funds, because after a period of operation, the performance of the old funds has become clear, but it will take time to verify whether the newly issued money funds can achieve good performance.
At the same time, investors should try to choose the type of high-yield money fund with the highest annual return. However, it should also be remembered that the Monetary Fund is more suitable for managing current funds, short-term funds or temporary funds whose current use is difficult to determine. For the medium and long-term funds that have not been used for more than one year, we should choose financial products with higher returns such as treasury bonds, RMB financial management and bond funds.
There are only two ways for the IMF to announce the distribution of its income: "every ten thousand shares of income" and "seven-day annualized rate of return". "The income per 10,000 shares is 1.07302" means that the income per 10,000 money fund shares on that day can be 1.07302 yuan; "Seven-day annualized rate of return" refers to the rate of return converted from average income to one year, which is a parameter to examine the long-term profitability of a monetary fund. Monetary funds with higher "seven-day annualized rate of return" have relatively higher rates of return. However, it should be noted that this indicator has certain limitations: because if the income of a certain day is particularly high, the annualized income of seven days including this day will be raised, so it can only be used as a reference indicator for selecting products. It is important to look at the past historical performance and evaluation.
The net value of the money fund remains unchanged at 1 yuan, and the change of its income is reflected by the change of the fund share. Investors can get their own funds back by redeeming the fund share. The only way for the money fund to pay dividends is to "transfer dividends to investment", so the fund company will transfer the accumulated income to the money fund share every month and pay it directly to the investor's fund account. The redemption rate of the money fund is 0%, and there is no handling fee.
In addition, on holidays and weekends, the money fund will also make money. Therefore, in case of some long holidays, you can buy money funds two working days before the festival to get holiday income.
Monetary funds generally have the highest annual rate of return at the end of the month, the end of the season and the end of the year.