Money market fund is called money fund for short. 1. Investment scope of money funds: As the name implies, money market funds are funds that invest in money market instruments. According to the Interim Provisions on the Management of Money Market Funds, the investment scope of China's money funds includes: bank time deposits and large deposit certificates within one year (including one year); Bonds with a remaining maturity of less than 397 days (inclusive); Bond repurchase with a term of less than one year (including one year); Central bank bills with a term of less than one year (inclusive); Other money market instruments with good liquidity recognized by China Securities Regulatory Commission and China People's Bank. 2. Characteristics of money market funds: 1. The main difference between money market funds and other funds that invest in stocks is that the net asset value of the fund unit is fixed, which is always 1 yuan. The fund reinvests in dividends, which makes the income accumulate continuously and increases the fund share owned by investors. 2. Good fluidity and high safety. Investors can redeem the fund at any time as needed. 3. Low risk. The term of money market instruments is usually very short, and the average term of investment portfolio is usually 4~6 months, so the risk is low, and its yield is usually only affected by market interest rate. 4. The investment cost is low. Money market funds do not charge subscription and redemption fees, and their management fees are also low. 5. Money market funds are usually regarded as risk-free investment tools, suitable for short-term investment and interest-bearing, and hold cash in the form of money market funds for emergencies. For working-class people who are busy with their careers, if they spend a certain amount of idle funds every month to buy money market funds, the long-term accumulated compound interest return will be considerable. At the same time, it does not occupy funds like stocks and bonds, and can be converted into cash at any time. The turnover time is only one or two days, which is very convenient. Therefore, money funds, also known as "quasi-savings products", have the advantages of capital preservation, regular income and monthly dividends. Risks and benefits of money market funds: Theoretically speaking, money market funds also have certain risks. There have been times when individual funds have a negative return of 10,000 units per day, but there has never been a time when the annualized rate of return of money market funds is negative on a certain day on the 7th. It can be clearly said that money market funds never have the risk of principal loss. It's just a question of the rate of return. There are two indicators reflecting the rate of return of money market funds: one is the annualized rate of return on the 7 th; The second is the income per 10,000 fund units. As a short-term indicator, the 7-day annualized rate of return is the data of the first 7 days including the average income of the day, which is the most intuitive indicator to reflect the performance of the fund and easy to compare with the savings income. But that's only the fund's profit level in the past seven days, and it doesn't represent the future income level. When examining this index, we can't ignore the concern about the volatility of income. Generally speaking, if the index fluctuates greatly, the actual rate of return of investors may be quite different from that at the time of purchase. The income per 10,000 fund shares refers to the data that the income from the daily operation of the money fund is evenly distributed to each share, and then calculated and compared with 654.38+00,000 shares as the standard. The higher this indicator is, the higher the actual income investors get. Judging from the past rules, the income of the money fund often has a great relationship with the capital situation in the same period. If the short-term funds are very tight, the short-term income of the money fund will suddenly increase. Judging from the situation of 20 1 1 and 20 12 money fund markets, the 7-day annualized rate of return of many products exceeds the 1 year fixed deposit rate, and even exceeds the half-year fixed deposit rate.