Money market funds can only suffer principal losses. Generally speaking, the market yield rises sharply in the short term, which leads to a sharp drop in securities prices; At the same time, a large number of money funds were redeemed, and bonds with falling prices could not be held at maturity, resulting in actual losses after selling bonds.
The probability of a money market fund losing its principal in one day is very low (0.06 1 17%). If you hold it for a week or a month, the probability of principal loss is close to zero. With the extension of holding period, the probability of loss caused by market risk will be very low.
Extended data:
Compared with investors' direct investment in the stock market, equity funds have the characteristics of scattered risks and low cost. For ordinary investors, personal funds are limited after all, and it is difficult to reduce investment risks by diversifying investment types.
But if you invest in stock funds, investors can not only share the benefits of various stocks, but also spread the risks among various stocks by investing in stock funds, which greatly reduces the investment risks.
Baidu encyclopedia-fund