Is it safe to invest in money funds?
Money fund is a relatively safe investment and wealth management product. Monetary fund is called quasi-savings, which is an open-end fund and can be redeemed at any time. Monetary fund has the characteristics of high security, strong liquidity, stable income and low investment threshold, which is more suitable for conservative investors with weak risk tolerance. Like the balance treasure in Alipay and the change pass in WeChat, they are all money funds, which are relatively safe. Monetary funds invest in securities such as treasury bonds, commercial bills, central bank bills, corporate bonds, bank time deposit certificates, etc., and the risks of these investment targets are relatively small. Fund custodians help customers obtain relatively stable income through effective asset allocation. Money fund is a low-risk financial product in the fund, and the risks of other funds are basically higher than those of money funds, so no matter from which angle, money funds are relatively safe.
Will you lose your principal?
Theoretically, it is possible for the money fund to lose its principal, but this situation has not been found in practice, and China has strict supervision over the financial market, so it will not lose its principal under normal circumstances. Just like the balance treasure in Alipay, I haven't heard of the loss of principal for so many years. In all investment and wealth management products, except bank deposits, other wealth management products are theoretically non-guaranteed and interest-guaranteed, and so are bonds, so national debt is theoretically non-guaranteed and interest-guaranteed, but national debt is called Phnom Penh bond, which means there is basically no risk, and it is endorsed by national reputation.