The investment direction of money market funds is mostly agreement deposits. Because of the large amount of funds and tight market funds, we have a high bargaining power with banks, and we can get much higher interest rates than deposits in banks. So its income will be high. In addition, it will invest in high-credit AAA bonds within 397 years, bond repurchases and central bank bills within 1 year, which are very safe assets and will not be risky.
The current income is about 4.0-4.5% in 2008, compared with the current bank 1 year fixed deposit rate of 3.3%.
The money fund may have a high return in a short period of 1-2 days, but this situation cannot last.
It is meaningless to look at the trend chart from the secondary market. This kind of money is not used for speculation.
There is no distinction between high and low.
Because the money fund will have a small amount of income every day and will not lose money.