Money market fund is called money fund for short.

1. Investment scope of money funds: As the name implies, money market funds are funds that invest in money market instruments. According to the goods

According to the Interim Provisions on the Management of Money Market Funds, the investment scope of China's money funds includes: bank time deposits and large deposit certificates within one year (including one year); Bonds with a remaining maturity of less than 397 days (inclusive); Bond repurchase with a term of less than one year (including one year); Central bank bills with a term of less than one year (inclusive); Other money market instruments with good liquidity recognized by China Securities Regulatory Commission and China People's Bank.

2. Characteristics of money market funds: 1. The main difference between money market funds and other funds that invest in stocks lies in the capital of fund units.

The net output value is fixed, always 1 yuan. The fund reinvests in dividends, which makes the income accumulate continuously and increases the fund share owned by investors. 2. Good fluidity and high safety. Investors can redeem the fund at any time as needed. 3. Low risk. The term of money market instruments is usually very short, and the average term of investment portfolio is usually 4 ~ 6 months, so the risk is low, and its yield is usually only affected by market interest rate. 4. The investment cost is low. Money market funds do not charge subscription and redemption fees, and their management fees are also low. 5. Money market funds are usually regarded as risk-free investment tools, suitable for short-term investment and interest-bearing, and hold cash in the form of money market funds for emergencies.

For working-class people who are busy with their careers, if they spend a certain amount of idle funds every month to buy money market funds, the long-term accumulated compound interest return will be considerable. At the same time, it does not occupy funds like stocks and bonds, and can be converted into cash at any time. The turnover time is only one or two days, which is very convenient. Therefore, money funds, also known as "quasi-savings products", have the advantages of capital preservation, regular income and monthly dividends.

Risks and benefits of money market funds: Theoretically speaking, money market funds also have certain risks. There have been times when individual funds have a negative return of 10,000 units per day, but there has never been a time when the annualized rate of return of money market funds is negative on a certain day on the 7th. It can be clearly said that money market funds never have the risk of principal loss. It's just a question of the rate of return.

There are two indicators reflecting the rate of return of money market funds: one is the annualized rate of return on the 7 th; The second is the income per 10,000 fund units. As a short-term indicator, the 7-day annualized rate of return is the data of the first 7 days including the average income of the day, which is the most intuitive indicator to reflect the performance of the fund and easy to compare with the savings income. But that's only the fund's profit level in the past seven days, and it doesn't represent the future income level. When examining this index, we can't ignore the concern about the volatility of income. Generally speaking, if the index fluctuates greatly, the actual rate of return of investors may be quite different from that at the time of purchase. The income per 10,000 fund shares refers to the data that the income from the daily operation of the money fund is evenly distributed to each share, and then calculated and compared with 654.38+00,000 shares as the standard. The higher this indicator is, the higher the actual income investors get.

Judging from the past rules, the income of the money fund often has a great relationship with the capital situation in the same period. If the short-term funds are very tight, the short-term income of the money fund will suddenly increase. Judging from the situation of 20 1 1 and 20 12 money fund markets, the 7-day annualized rate of return of many products exceeds the 1 year fixed deposit rate, and even exceeds the half-year fixed deposit rate.

Four. A comparison between one-year fixed deposits of banks and money market funds. (1) The yield of money market funds is equivalent to the bank's time deposits of six months to one year, and may even exceed the one-year time deposit interest rate. (2) The liquidity of time deposits is insufficient. Once the deposit needs money before maturity, the interest can only be calculated according to the demand deposit. Money market funds are highly liquid and can be redeemed at any time. Generally, payment can be made on the day after redemption at the latest. (3) Money market funds compound interest on a daily basis. For example, if you have 1 10,000 money funds, the net income of each 1 10,000 fund today is 0.8000 yuan, that is, your income today is 0.8000 yuan, and tomorrow's income is calculated by the principal 10000.80 yuan. (4) Monetary fund income is generally accrued on a daily basis and carried forward on a monthly basis, that is, "every journal income pays dividends on a monthly basis". The specific carry-over date varies among fund companies. At the time of redemption, the proceeds not carried forward shall be redeemed together.

Verb (abbreviation of verb) Comparison between RMB wealth management products and monetary funds. (1) The investment scope is roughly the same. (2) Usually, the purchase starting point of RMB financial planning is more than 50,000 yuan; The subscription starting point of the money fund is 1000 yuan, which has a lower investment threshold and is more suitable for ordinary investors. (3) Closed-end RMB wealth management products have a lock-in requirement for a period of time, and cannot be redeemed in advance as agreed, while money market funds can purchase and redeem at any time without any handling fee. (4) In terms of flexibility, RMB wealth management has no other products that can be converted to each other. Even if the same product has different maturities, there is no room for conversion. Money funds can be converted with other types of fund products of the same fund company, so that investors can capture other investment opportunities in the capital market timely and conveniently while investing in the money market. (5) RMB wealth management products. When purchasing, the "expected annualized rate of return" is stated, and the actual rate of return may not be reached, and there is even the risk of loss of principal. It can be seen that it is superior to RMB wealth management products in terms of safety, liquidity, flexibility and starting point.

Some money funds are divided into Class A and Class B. The subscription starting point of Class A is 1 10,000 yuan, while Class B is much higher, at least 5 million yuan, and some fund companies are 1 10,000 yuan. Obviously, although the yield of Class B is higher than that of Class A, most individual investors can't get in.