Monetary fund is an open-end fund. According to the types of financial products invested by open-end funds, people divide open-end funds into four basic types: stock funds, hybrid funds, bond funds and monetary funds. The first two belong to the capital market, and the latter is the money market. Monetary funds mainly invest in short-term financial products with high security, such as bonds, central bank bills and repurchase. , also known as "quasi-savings products". Their main features are "worry-free principal, convenient demand, regular income, daily income and monthly dividend".
Money funds only invest in the money market, such as short-term government bonds, repurchase, central bank bills, bank deposits, etc. And there is basically no risk. Its liquidity is second only to bank demand deposits, and its income is calculated every day. Generally, the one-month income is carried forward to the fund share, and the income is slightly higher than the one-year time deposit, and the interest is tax-free. The principal of the Monetary Fund is relatively safe, with an expected annual rate of return of 3.9%. It is suitable for liquid investment tools and a substitute for savings.
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.
In general, the probability of investors' profit is 99.84%; The expected rate of return is between 3.8-5%, which is higher than the interest of 3.5% for one-year time deposit, and there is no interest tax; It can be redeemed at any time. After applying for redemption, the funds will generally arrive the next day, which is very suitable for units and individuals pursuing low risk, high liquidity and stable income.