Because the money fund is a fund that invests in short-term securities in the money market, it responds quickly to the central bank's monetary policy.
The yield of money fund will fall first (one week), then stabilize (one month) and then rise. The annualized rate of return will reach 2.2-2.5%. You can buy it.
Raising interest rates is one of the macro-control policies, which is bad for both the stock market and the bond market. It has great influence on long-term bonds and little influence on short-term bonds. Fund managers will adjust the duration of holding bonds according to market and policy conditions to avoid some risks. The income of bond funds mainly comes from the interest of holding bonds and the difference between bond buying and selling. Some bond funds (Harvest Bond, Guo Fu Tian Li, etc. ) holds nearly 20% of the shares, which also benefits from stock trading. If interest rates are no longer raised, bonds will basically have no impact, and interest rate hikes have been basically digested. [Shihua Financial News] Analysts pointed out that China has entered the cycle of raising interest rates. With the increase of interest rate, money market funds face the risk of falling position prices and losing customers. The increase of the central bank bill interest rate under the interest rate hike can improve the income of the money fund. In the situation of increasing investment risk in the stock market, if the money fund is properly allocated and maintains stable income, it can become a relatively safe hedge.