Official platform of fund companies
You can purchase directly through the fund company official website or APP according to the prompt.
Major banks
There are many issuers of money funds, which are generally sold through banks and can be purchased at local bank outlets.
securities company
Some money funds can be purchased through stock accounts, similar to buying and selling stocks. When investors buy such funds, they can first open a fund account in a securities company, and then purchase the corresponding funds through this account.
Third party platform
Third-party platforms such as Alipay, WeChat and JD Finance all have money fund purchase channels.
Monetary fund is an open-end fund that collects idle social funds, is operated by fund managers and kept by fund custodians. It specializes in investing in low-risk money market instruments, which is different from other types of open-end funds. It has the characteristics of high security, high liquidity, stable income and "quasi-savings".
The assets of the Monetary Fund are mainly invested in short-term monetary instruments (generally within one year, with an average term of 120 days), such as treasury bonds, central bank bills, commercial bills, bank time deposit certificates, government short-term bonds, corporate bonds (with high credit rating), interbank deposits and other short-term securities.
Characteristics of monetary fund products
1. Principal security: Most money market funds have the lowest risk among all kinds of funds. Money fund contracts generally do not guarantee the security of the principal, but in fact, due to the nature of the fund, the loss of the principal of the money fund rarely occurs 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 rate of return: 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 also 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.
4. Low investment cost: Generally speaking, there is no handling fee for buying and selling money market funds, and the subscription fee, subscription fee and redemption fee are all zero, so it is very convenient for funds to enter and exit, which not only reduces the investment cost, but also ensures liquidity. For the first subscription/subscription, 1000 yuan, and for the second subscription, 100 yuan will be increased.
5. Dividend exemption: Most money market funds always maintain the face value of 1 yuan. The income is calculated every day, and there is interest income every day. Investors enjoy compound interest, while bank deposits are only simple interest. Monthly dividends are carried forward as fund shares, and dividends are exempt from income tax.