How does the money fund make money?
1. Income source: The income of the Monetary Fund mainly comes from the interest on bonds held and the interest on deposits. Fund companies will invest in low-risk, short-term fixed-income products, which usually provide relatively stable interest returns. Fund managers can maximize their returns by optimizing their investment portfolios and choosing high-quality bonds.
2. Management fees: Monetary funds usually charge management fees, which will be deducted from the total assets of the fund. Therefore, when buying money funds, we should pay attention to the rate and choose funds with lower rates. Low management costs can improve the return on investment.
3. Changes in net value: The net value of the Monetary Fund is generally stable, usually based on 1 yuan. However, due to fluctuations in market interest rates and bond prices, the net value of the money fund may rise or fall slightly. This change in net worth usually has little effect on investors.
How do novices buy money funds?
1. Understand the basics: As a novice, you must first understand the basic concepts, characteristics and risks of the Monetary Fund. You can expand your knowledge by reading relevant investment books, looking up financial information online or consulting professionals.
2. Choose a suitable fund company: Before deciding to buy a monetary fund, it is recommended to choose a fund company with good reputation, standardized management and reasonable rate. You can refer to the historical performance of the fund company, management team, the type and scale of fund products and other factors for evaluation.
3. Opening a securities account: You need to open a securities account to buy a money fund. You can open such an account in the sales department of the fund company or the securities broker of the stock exchange. It is usually necessary to provide identity documents, bank account information and other materials.
4. Buy money funds: You can buy money funds directly on the exchange or online trading platform during trading hours through securities accounts. Select the target fund, enter the purchase amount, and complete the transaction according to the system prompt. Please note that different brokers and trading platforms may have different operating procedures.
5. Regular monitoring and management: after purchasing the money fund, regularly monitor the performance and market situation of the fund. According to the individual's investment objectives and risk tolerance, the investment portfolio can be adjusted or revalued in a timely manner.