On-site money fund refers to the money fund that can circulate in the secondary market. The floor money fund not only inherits the profit advantage of the traditional money fund as a cash management tool, but also is very convenient to operate, does not delay the trading of stocks, and can meet the needs of investors for T+0 trading of idle funds. The trading hours are open for subscription and redemption, and the redeemed funds can be used to buy stocks immediately. Investors only need to operate in the exchange account, funds do not need to be transferred in and out, and there is no need to go through any formalities, which will not affect the investment efficiency at all.

On-site monetary fund classification:

There are two kinds of on-exchange money funds, on-exchange money funds and off-exchange money funds.

Trading-based on-market money funds refer to money funds that can be traded on the market and directly in the secondary market, just like buying and selling stocks, such as Huabao Xingye cash increase ETF. This kind of money fund is like buying and selling stocks. You can buy and sell as long as you have an opponent. Therefore, in theory, there is no upper limit for subscription and redemption, mainly depending on the liquidity of the secondary market. On the other hand, such funds may generate a discount premium. For example, when a large number of investors need to redeem, there may be a discount. But the discount will not be very big, because once there is a discount, someone will buy arbitrage immediately.

For non-trading hall money funds, investors confirm the application for subscription and redemption in real time through the "Shanghai Stock Exchange" platform to realize T+0 trading; There will be no discount premium for off-exchange money funds, but there is generally a redemption ceiling. This ceiling is set by the fund company and changes every day. The amount of the ceiling mainly depends on the second fund.

Advantages of on-site monetary fund:

The main advantage of the floor money fund is that it can directly convert the stock base. For a general money fund, if an investor sells shares on T day, the funds will arrive on T+ 1 day, and then the funds will be transferred out of the stock account to buy the money fund, so it is necessary to confirm the subscription on T+2 day and calculate the income. For on-site money funds, investors can purchase or buy fund shares when they sell shares on T day and start to calculate the income, so they can redeem or sell fund shares on T+ 1 day.

The reverse operation is the same. When the market is bad, investors can choose to buy the on-site goods base to obtain stable income. If market opportunities come, they can sell funds quickly and buy stocks immediately. The trading hours of the on-site monetary fund are synchronized with the trading hours of the stock market, which is convenient for investors to convert funds to obtain income.