Is there a big currency risk in China's cash holdings? First, from the perspective of risk level, China's cash-increasing currency belongs to the money fund, and the risk level of the money fund is "low risk". As we all know, fund products are not guaranteed, but low-risk funds are unlikely to lose money, so we don't have to worry too much.

Second, from the historical experience, as a monetary fund, China's cash increment is relatively safe. There has been no loss in the history of the money fund, but at most, the income has decreased. A typical example is Yu 'ebao, but the principal of the money fund is still safe.

Third, from the perspective of fund scale, by the end of the first quarter of 20 19, the scale of China's cash-enhanced currency management was about 34 billion yuan. This money fund has a moderate scale and there is no risk of liquidation.

Fourth, from the investment direction, China's cash increase is mainly invested in short-term bonds and short-term bank deposits. The interest rate bonds it invests in have a high credit rating and rarely default, not to mention the safety of bank deposits, so there is little risk of cash increase in China.

5. From the historical performance, Huaxia Cash Profit-increasing Currency was established in 2004, and has achieved positive returns every month, quarter and year for more than ten years, with an increase of 3.05% in the most recent year, ranking first among similar funds 1/2. Judging from its historical performance, its investment risk is very low.