Money funds have low risks and low returns. The money fund is a fund that invests in the global money market. Usually invest in short-term bank deposits, large negotiable certificates of deposit, government bonds, corporate bonds, commercial paper, etc. Because the money market is generally for large investors to participate, the emergence of money funds provides opportunities for small investors to enter the money market. Monetary fund has the characteristics of low investment cost, strong liquidity and low risk. Investors often convert equity funds into monetary funds when their performance is poor, so as to avoid the "storm" and wait for the opportunity to subscribe for equity funds or other fund varieties. Therefore, money funds are also called anchor funds.

The net asset value of money market funds is usually kept at one yuan. This "one yuan net worth" is not a mandatory requirement, nor is it a guarantee requirement. However, due to the stable short-term securities income invested by the fund manager, the fund manager can maintain the unit net value at one yuan level, and only change the dividend level paid by the fund.

If you have a fund of 1000, then your net fund value is 1000 yuan, and the standard for measuring fund performance is the rate of return, which is reflected in the amount of dividends. For example, after the above investment 1 year, the rate of return is 5%, and you choose to reinvest with dividends, then you have 1050 fund units with a net value of 1050 yuan.

Generally, funds that maintain a net value of one yuan belong to the income distribution type, that is, investors can choose to reinvest in dividends or cash dividends. The other is the income accumulation fund, which automatically turns dividends into reinvestment. The net value of some funds of this type after dividends may be adjusted to 1 yuan or more.