(1) Generally speaking, when the following two conditions are met at the same time, money market funds may suffer principal loss:
1) In a short period of time, the market yield rose sharply, which led to a sharp drop in securities prices.
2) Money funds were redeemed in large amounts at the same time, and bonds with falling prices could not be held for maturity, resulting in actual losses after selling bonds.
(2) The main difference between the Monetary Fund and other funds in investing in stocks is that the net asset value of each fund unit is fixed, usually 65,438+0 yuan per fund unit. After investors invest in this fund, they can reinvest with the proceeds, and the investment income will accumulate continuously to increase the fund share owned by investors.
For example, investors can own 100 fund shares if they invest 100 yuan. After 1 year, if the return on investment is 8%, the investor will have 8 more fund shares, totaling 108, with a value of 108 yuan.
(3) To sum up, the Monetary Fund invests in fixed-income products. Although the income is not high, the average annual income can reach about 2%-3%, the risk is extremely low, the principal is safe, and it is suitable for small short-term investment.