1, the principal is safe
The investment object of money market funds determines that the risk is the lowest among all kinds of funds, which in fact ensures the safety of the principal.
2. Strong capital flows
Liquidity is comparable to demand deposits. Money market funds are easy to buy and sell, and can be purchased and redeemed at any time without handling fees. After applying for redemption, you can get the money within 2 days, which is highly liquid.
3. High rate of return.
Most money market funds have the income level of national debt investment. Because money market funds mainly invest in some short-term and liquid money market instruments and keep rolling investment, the income of money market funds can always keep up with the latest changes in interest rates quickly, and can obtain a yield higher than that of time savings deposits in the same period.
4. The risk is very low
The interest rate risk of money market fund portfolio is extremely low. When inflation occurs, the real interest rate may be low or even negative. Money market funds can keep abreast of interest rate changes and inflation trends, thus obtaining stable and high returns.
In addition, money market funds are similar to investment varieties with floating interest rates because of their short portfolio term. Once interest rates are raised, they can also enjoy the benefits of rising interest rates.
In addition, the issuers of financial instruments held by money market funds and the participants in the money market are financial institutions or government departments with extremely high credit ratings, so the credit risk and commercial risk are low.
5. The starting point is low.
The starting point of money market fund subscription is about 1 000 yuan, and the re-subscription will increase by 100 yuan, and the handling fee is free. The subscription fee, subscription fee and redemption fee are all zero, which is very convenient for funds to enter and leave, which not only reduces the investment cost, but also ensures liquidity.
6. Dividends are tax-free. Most money market funds always have a face value of 1 yuan, and the income is calculated every day, and there is interest income every day. Investors enjoy compound interest, while bank deposits are only simple interest. Monthly dividends are carried forward as fund shares, and dividends are exempt from income tax.
7. Flexible conversion
General money market funds can also be exchanged with other open-end funds under the fund management company, which is efficient, flexible and low-cost.
When the stock market is good, it can be converted into stock funds, and when the bond market is good, it can be converted into bond funds. When there are no good opportunities in the stock market and bond market, money market funds are a good haven for funds, and investors can seize various opportunities in the stock market, bond market and money market in time.