Are all money funds guaranteed?

Money fund is the abbreviation of money market fund. Refers to the types of funds with high credit rating (generally below 1 year) such as cash deposits and short-term bills. Internet baby wealth management products, such as Yu 'ebao, which appeared in the market in the past two years, are essentially indirect variants of money funds. Their expected annualized expected income source is consistent with the expected annualized expected income of the docked wealth management products. In other words, the baby wealth management products purchased by users are essentially buying a certain monetary fund variety. However, the purchase threshold of baby wealth management products is low, and the requirements and restrictions are not as strict as those of traditional money funds.

Are all money funds guaranteed? After buying a money fund, many people will doubt that the foundation will suddenly suffer huge losses.

The discussion on the capital preservation of the monetary fund needs to start from the investment scope of the monetary fund. The investment scope of the Monetary Fund is mainly cash deposits and short-term bills with high credit rating (generally below 1 year). Generally speaking, if an international rating standard is adopted, its credit rating shall not be lower than that of China's short-term sovereign debt by the same rating agency; Adopting domestic rating standards, the credit rating is the highest in the rating system of the same rating agency. Therefore, generally speaking, the assets invested by such funds are less risky and have little loss of principal, so they are considered as short-term safe havens for funds.

However, under certain conditions, there is a risk of a run on money funds. (Details of the risk of money fund run) During the global financial crisis in 2007-2009, some money funds suffered losses due to the bankruptcy of some high-rated companies (such as Lehman Brothers).