On-exchange money funds refer to fund products that invest in money market instruments with different maturities, different issuance objects, different credit ratings, and different debt types. This product is based on a fixed benchmark net value, T+0 trading and Features include subscription and redemption at any time. On-exchange money funds mainly invest in financial instruments with good short-term liquidity and low risks, and are asset managed by professional institutions. Therefore, the investment risks are low. They are a financial management method that investors have paid great attention to in recent years.

Advantages and Applicable Groups of On-exchange Money Funds

On-exchange money funds have become the first choice for young investors due to their features such as free handling fees, fast subscription and redemption, and active management. Compared with traditional bank financial management, time deposits and other financial management methods, exchange-traded money funds are more flexible, are not subject to term and interest rate constraints, and can better meet the asset allocation needs of investors. At the same time, for some middle-aged and elderly people who pursue stable returns, on-site currency funds are also a good choice. The investment strategy of on-site currency funds is relatively stable, the risks are controllable, and it has the characteristics of high capital security and relatively stable income levels. It is suitable for some middle-aged and elderly groups with low risks and pursuing relatively stable income.

Because on-site currency funds have the advantages of good liquidity and relatively stable yields, many investors have begun to turn their attention to this field. Since 2019, the scale of on-market monetary funds has also continued to grow. However, before investing, investors need to understand that although the yields of on-market money funds are relatively stable, there are also problems such as different process channels, large differences in product yields, and short-term market fluctuations. Therefore, when choosing on-site currency funds, you need to carefully consider various risk factors and propose reasonable investment plans based on your own needs.