Money fund is a kind of safe short-term financial management product, which mainly invests fund assets in bonds, central bank bills, repurchase and so on.
The rise and fall of money funds are mainly affected by several factors. When the funds in the market are tight, such as the end of the quarter and the end of the year, the income of the money fund will rise as a whole, and vice versa.
If the fund manager sells the bonds invested by the money fund at a price higher than the cost price, it will also increase the income of the money fund in a short time.
At the same time, due to market liquidity, bond maturity and repurchase sales, fund redemption and other reasons, the 7-day annualized income of the money fund will suddenly soar. This is a very short-term behavior, so don't buy it easily when you see that the annualized income of seven days is too high. In addition, there are still places to pay attention to when buying money funds.
Monetary funds are suitable for short-term capital planning. If you want to invest in the medium and long term, you can choose other funds, because the income of the money fund is really limited.
Buy old ones instead of new ones. Choosing a monetary fund must depend on the time when the fund was established. The longer it takes to establish, the better. Newly issued money funds are generally not considered.
When applying for redemption, we generally do not consider Friday's subscription, because in the case of Friday's subscription, you can't enjoy the benefits from Friday to Sunday. Try not to operate redemption on Thursday, because only the redemption share can be confirmed on Friday, so there is no benefit from Friday to Sunday.