Monetary fund is an open-end fund that collects idle social funds, is operated by fund managers and kept by fund custodians. It specializes in investing in low-risk money market instruments, which is different from other types of open-end funds. It has the characteristics of high security, high liquidity, stable income and "quasi-savings". So how to choose a money fund?

1, size of monetary fund

Although money funds with large amount of funds often have more bargaining space and can get higher agreed deposit returns, they are too large and easy to be dragged down. For example, Yu 'ebao's plate is too big to be flexibly adjusted, and it cannot be greatly adjusted to short-term debt when interest rates go down. A large number of assets in the position should be used as cash positions to cope with possible redemption at any time, which is why Yu 'ebao must limit it. If the cash ratio is too large, the most direct consequence is a decrease in income. The plate is too small, and the fund may exchange the yield for liquidity.

2. IMF report

The term and proportion of various investment assets will be announced in the quarterly report of the IMF. When the interest rate is high, the income of agreement deposit is higher. At this time, it is more reliable to choose some old and big money funds. However, if the interest rate goes down, the income of the agreement deposit will be significantly reduced.

3. Monetary Fund interest rate

Although the money fund has no subscription fee and redemption fee compared with other funds, it still has management fee, custody fee and sales service fee. Of course, the lower these costs, the better. After all, fund managers can't work for nothing.

4. Remaining period of assets

Under normal circumstances, the shorter the term, the lower the return on assets. However, if the market lacks short-term assets, the return on short-term assets is the highest. Therefore, the reasonable allocation of duration by fund managers can improve rate of return on capital while satisfying liquidity.