Brief introduction of money market funds

1. What is a money market fund?

Money market funds refer to funds that invest in short-term securities in the money market. The assets of the Fund are mainly invested in short-term monetary instruments, such as treasury bills, commercial paper, bank time deposit certificates, government short-term bonds, corporate bonds, interbank deposits and other short-term securities.

Second, the product characteristics of money market funds

1, the principal is safe

Because most money market funds mainly invest in low-risk securities such as treasury bonds, financial bonds, central bank bills, bond repurchases and interbank deposits with a remaining maturity of less than one year, these investment types determine that the risk of money market funds is the lowest among all kinds of funds, which in fact ensures the safety of principal.

2. Strong capital flows

Liquidity is comparable to demand deposits. The fund is easy to buy and sell, with short time to receive funds and high liquidity. Generally, the funds will arrive in two or three days after redemption.

3. Higher output.

Most money market funds generally have the income level of national debt investment. Money market funds can not only invest in investment tools that ordinary institutions can invest in, such as exchange repurchase, but also enter the inter-bank bond and repurchase market and the central bank bill market for investment. Its annual net rate of return is generally 2%-3%, and its recent rate of return is 2.6%-2.7%, which is much higher than the income level of bank savings in the same period. Moreover, money market funds can avoid hidden losses and resist inflation. When inflation occurs, the real interest rate may be low or even negative. Money market funds can keep abreast of interest rate changes and inflation trends, obtain stable income, and become a tool to resist rising prices.

4. The investment cost is low.

Money market funds are generally free of handling fees, and the subscription fee, subscription fee and redemption fee are all zero, so it is very convenient for funds to enter and exit, which not only reduces the investment cost, but also ensures liquidity.

5. Dividends are tax-free

The face value of most money market funds is always 1 yuan. The income is calculated every day, and there is interest income every day. Investors enjoy compound interest, while bank deposits are only simple interest. Monthly dividends are carried forward as fund shares, and dividends are exempt from income tax.

In addition, general money market funds can also be converted with other open-end funds under the fund management company, which is efficient, flexible and low-cost. When the stock market is good, it can be converted into stock funds, and when the bond market is good, it can be converted into bond funds. When there are no good opportunities in the stock market and bond market, money market funds are a good haven for funds, and investors can seize various opportunities in the stock market, bond market and money market in time.

3. What kinds of money market funds are there at present?

At present, there are several money market funds in the market, such as Hua 'an cash income, Bosera cash income, China Merchants cash appreciation, South China cash appreciation and Huaxia cash appreciation.

Four. Overview of monetary funds

South Cash Increase Fund (20230 1)

Huaan Cash Fuli Fund (040003)

Huaxia Cash Increase Fund (003003)

Bosera Cash Income Fund (050003)

China Merchants Cash Appreciation Fund (2 17004)

Galaxy Yin Fu Monetary Fund (150005)

Yin Hua Money Market Fund (currency A:180008; Currency b: 180009)

Changxin Interest Income Fund (5 19999)

Nuoan Money Market Fund (320003)

Haifutong Money Market Fund (5 10005)

E Fund for Money Market (1 10006)

Verb (abbreviation of verb) What is an open-end fund and what is a closed-end fund? What's the difference between open-end funds and closed-end funds?

The total number of fund units of open-end funds is not fixed, which can be issued according to the development needs and redeemed by investors. The redemption price is equal to the current net asset value minus the handling fee.

Because investors can freely join or withdraw from this open-end investment fund, and there is no limit on the number of investors, it is also called * * * mutual fund. Most investment funds are open.

The total amount of closed-end funds is limited, and once the issuance plan is completed, no additional issuance will be made. Investors are not allowed to redeem, but the fund shares can be publicly transferred on the stock exchange or OTC market, and the transfer price is determined by market supply and demand.

The differences between the two are as follows:

1, the variability of fund size is different. The fund shares issued by open-end funds are redeemable, and investors can subscribe for the fund shares at any time, so the size of the fund is not fixed; The scale of closed-end funds is fixed.

2. The transaction prices of fund units are different. The buying and selling price of fund units of open-end funds is based on the net asset value corresponding to the fund units, and there will be no discount. The price of closed-end fund shares will be more affected by the relationship between market supply and demand, and the price fluctuates greatly.

3. The trading channels of fund units are different. Investors of open-end funds can buy or redeem funds directly from fund management companies at any time, and the handling fee is low. The trading of closed-end funds is similar to stock trading, which can be traded in the securities market and requires the payment of handling fees and securities transaction tax. Generally speaking, the cost is higher than that of open-end funds.

4. Different investment strategies. Open-end funds must reserve a part of their funds to cope with investors' redemption at any time, and long-term investment will be restricted. However, closed-end funds cannot be redeemed, so they can make full use of funds, make long-term investments and achieve long-term business performance.

5. The required market conditions are different. Open-end funds are flexible, easy to scale, and suitable for financial markets with high openness and large scale. On the contrary, closed-end funds are suitable for financial markets with imperfect financial system, low openness and small scale.