The assets of the Monetary Fund are mainly invested in short-term monetary instruments (generally within one year, with an average term of 120 days), such as treasury bonds, central bank bills, commercial bills, bank time deposit certificates, government short-term bonds, corporate bonds (with high credit rating), interbank deposits and other short-term securities.
In fact, the investment scope of these money market funds are all varieties with high safety factor and stable income. Therefore, for many enterprises and individuals who want to avoid the risks in the securities market, money market funds are a natural haven. Under normal circumstances, you can get higher income than the interest on bank deposits, but the money fund can't guarantee the safety of the principal.
Extended data:
The cargo base has multiple advantages.
Monetary fund is a rare financial management tool comparable to demand deposit in liquidity and flexibility. Can be purchased at any time, redeemed at any time, and can receive the redemption amount of 1 to 2 days.
The investment threshold of money funds is generally 1000 yuan or even several hundred yuan, which is far lower than the wealth management products of banks. Don't worry, you can't buy it when it's sold out. Weekend holidays also have benefits, leaving no blank period of benefits, and every little makes a mickle, which invigorates the spare money in daily life and really changes people's concept that "you must accumulate a lot of money to invest in financial management".
However, all kinds of short-term financial management funds that were once very popular could not be redeemed before maturity, sacrificing liquidity, and the overall income level was not higher than that of money funds.
Baidu Encyclopedia-Monetary Fund