Alipay funds are generally divided into: money funds, bond funds, mixed funds, stock funds, index funds, QDII funds and so on. Different funds represent different risks and returns, among which money fund is the fund type with the least risk and the most stable return.
As the money fund is a special tool to invest in the money market, the risk is low, and the main investment direction is short-term securities such as government short-term bonds, corporate bonds, treasury bills, bank time deposit certificates and commercial bills. And the investment period is short, generally within 1 year, with an average of 120 days, so the risk is relatively small and the income is relatively stable.
Generally, money funds are not very volatile, relatively small, basically stable, with little loss of principal. Unless it is a special case of major economic crisis, it is generally more suitable for conservative investors to hold.
Some money funds can also consume directly. For example, Yu 'ebao and Coin Pass are both money funds, which can be directly used for consumption. When exchanging money, they also support two-hour quick arrival, which is very convenient. Up to now, Yu' ebao and change pass have never lost money. Although it does not represent the future, it will still have certain reference significance.
Moreover, the threshold of money funds is relatively low, and basically one yuan can be bought. It just means that you can't make money by buying a money fund for one yuan. Only when you have more money, you will earn more money if you expect a high annualized rate of return in seven days.