In terms of security, although the money fund is not a capital preservation product, it is not much worse than the capital preservation product, because it is a low-risk financial management, and its investment direction and income calculation method determine that it is difficult to suffer losses. So many people buy money funds, basically not because of its income, but because of its high security. After all, in the eyes of many people, safety is more important than profit. This is one of the main reasons for the decline in the yield of the money fund, but buyers are still strong.
Because when the yield of the money fund drops, other high-yield investment and wealth management products will also be affected. The stock market fell more and rose less, and the profit effect was not good. Most stock-related funds also performed poorly, while real estate investment fell into a downturn because house prices did not rise. In this context, the theme of investment and financial management will naturally shift from the pursuit of high returns to the pursuit of capital security, and the money fund is a safe and reliable financial management method.
However, the money fund is not the only financial product with high security, nor is it the most secure financial product. Why don't people buy money funds and buy other safer wealth management products? First of all, the money fund is not the only popular safe financial product, nor is it necessarily the most popular. For example, the interest rate of bank deposits has also increased, although it has also decreased. CDS interest rates of many banks have dropped, but it is still hard to find. The yield of US Treasury bonds has also dropped to freezing point, but no matter how much it is issued, it can be sold, and some people can't buy it.