The income of money funds is determined by the investment target, and money funds mainly invest in time deposits, interbank lending, short-term bonds and other products. The interest rates of interbank lending are different in each period, and the bond income is floating, so the daily income of money funds is different.

The investment targets of currency funds are generally risk-free money market instruments that require high security and short maturities, such as cash, time deposit interbank lending, short-term bonds and other assets. They are not allowed to invest in assets with higher risks and longer maturities.

For example: assets such as stocks, convertible bonds, corporate bonds with a credit rating below AAA, and securities with circulation restrictions.

Extended information: What products can currency funds invest in?

Money funds invest primarily in short-term money market instruments, usually within one year.

Investment products include: treasury bonds, central bank bills, commercial papers, bank certificates of deposit, short-term government bonds, corporate bonds (with higher credit ratings), interbank deposits and other short-term securities.

Money market funds usually have the following characteristics: 1. Low risk: Because they invest in securities with high short-term credit ratings, the risk is relatively low.

2. High liquidity: Monetary funds generally receive money within one or two days after redemption.

For example, Yu'e Bao Monetary Fund does not need to be redeemed.

3. Low cost: Compared with other funds, currency funds have the lowest handling fees. Generally, there are no subscription and redemption fees. You only need to pay management fees, custody fees or sales fees, but these fees are very small when converted.

4. Slightly higher returns: Although the returns of money funds are not that high compared to financial products, the returns of money funds are much higher than those of bank current funds.