First, is it suitable to buy a money fund?
Money fund enjoys the title of "quasi-savings" because of its advantages of high security, high liquidity and expected annualized expected income higher than current demand, and has become the first choice for investors to manage idle funds. From the experience at home and abroad, money market funds are often regarded by investors as a good substitute for bank deposits and a cash management tool, and are regarded as the king of cash management. At the moment when the purchasing power of money is declining, we should consider buying money funds.
2. What are the advantages of the Monetary Fund?
1. Principal security: Most money market funds have the lowest risk among all kinds of funds. Money fund contracts generally do not guarantee principal security, but in fact, due to the nature of funds, money funds rarely lose principal in reality. Generally speaking, money funds are regarded as cash equivalents.
2. Strong liquidity: liquidity can be 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. Low investment cost: Generally speaking, money market funds are 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. For the first subscription/subscription, 1000 yuan, and for the second subscription, 100 yuan will be increased.
4. Dividend exemption: The face value of most money market funds is always 1 yuan, and the expected annualized expected income is calculated every day, with 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.
5. 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.