The risks of money market funds mainly include financial market instability risk, international financial crisis risk and fund huge redemption risk.

1, the risk of financial market instability

Obviously, when the financial market is chaotic and the order is unstable, the uncertainty and uncontrollable of any kind of investment will increase. The ideal income of the money fund depends on the stable financial market.

2. International financial crisis

When the financial crisis breaks out, the money market that the IMF mainly invests in will undoubtedly be the first area to bear the brunt.

3. Huge redemption funds

Once the money fund encounters a sudden huge redemption behavior, the blow is huge. Under such circumstances, the fund manager has to sell, and the money sold will inevitably lead to a decline in prices, and investors will ultimately bear the losses.

Generally speaking, the money fund is still a good investment method with stable income and low risk.