Everyone is familiar with the low risk and stable expected return of money funds. So, what does the investment scope of the money fund include? In fact, the characteristics of the money fund are related to its investment scope. Let's give you a good analysis of the investment scope of the money fund.

Investment scope 1: cash; Bank time deposits and certificates of deposit within one year (including one year)

Cash investment is easy to understand, that is, part of the money fund exists in the form of cash, which can earn interest in the form of demand.

For bank time deposits and certificates of deposit within one year (including one year), the expected return of this part of investment is higher than that of bank demand, and the Monetary Fund will invest part of its funds here. Do not consider the liquidity of funds to reduce risks, so most of the time the money fund will not invest in bank time deposits and certificates of deposit for more than one year.

Investment scope 2: bonds with remaining maturity within 397 days (including 397 days)

In fact, this kind of bond is the main investment method of the money fund, but it is also to reduce risks. The money fund will only invest in short-term high-quality bond assets. For example, high-quality corporate bonds living in or rated above 3A.

Investment scope 3: bond repurchase with a term of less than one year (including one year); Central Bank Bill

The risk of this investment method will be slightly higher than that of investing in national debt, but the money fund can still make a small amount of investment, and at the same time, in order to ensure risk reduction, the investment time will be shortened within one year.

Investment scope 4: Other money market instruments with good liquidity recognized by China Securities Regulatory Commission and China People's Bank.

This kind of market tools will be more standardized and will not be listed one by one for the time being. However, because the investment scope of the money fund is very strict and regulated, you don't have to worry about being invested in high-risk projects such as stocks.

Just now, I observed the currency of Tian Hong Yu 'ebao and found that its investment distribution ratio is 62.42% in bank deposits, 9.43% in bonds and 28. 15% in others. It can be said that bank deposits account for the majority. This shows that the money fund's investment method is very safe, which is also the main reason why it never loses money.

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