1, fund size
There is a certain correlation between the expected rate of return of money funds and the fund size, which generally presents an inverted U-shaped relationship, that is, the expected rate of return of funds that are too large or too small is generally not high. There are limited products with high expected return that can be invested in the market as a whole, and the scale of the fund is too large, which means that the probability of the fund investing in products with low expected return increases, and the overall expected return level may decrease. The scale of the fund is too small, which is prone to the risk of centralized redemption and liquidation.
2, the expected return index of the fund
Seven-day annualized expected rate of return is one of the most common indicators for investors to choose money funds, but it has limitations in reflecting the long-term performance of funds. Judging whether a fund has strength depends not only on the current expected rate of return, but also on its performance in the past six months or even three to five years.
3, the fund issuance time
Low positions and low subscription fees are the main advantages of the new fund. The main advantage of the old fund lies in its strong historical performance reference. New and old funds have their own advantages and disadvantages, and investors can choose to buy them together.
4. Fund redemption rules
The redemption rules of money funds are related to the liquidity of funds, including the redemption time and the redemption limit of funds. If investors require higher liquidity, it is recommended not to choose T+2 or T+3 funds.
The above content is about how to choose a good money fund, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.