The money fund is a well-known open-end fund, and the number of investors who started to contact and invest in the money fund through Yu 'ebao or Licaitong is also very large. Some investors who want to get stable income will increase their investment in the money fund, so is the bigger the money fund, the better? Is the bigger the scale, the higher the yield? In order to solve your doubts, we have prepared relevant contents for your reference.

1. Is the bigger the money fund, the better?

Generally speaking, we think that the bigger the money fund, the better. However, this does not mean that the size of the money fund should be expanded indefinitely. If the size of the money fund exceeds the capacity limit of the operation team, it is likely that the scale effect will be reduced, resulting in a lower rate of return.

The reason why the Monetary Fund requires a large scale is because it is an open and highly liquid fund, and there may be a large amount of capital outflows and inflows at any time. If the size of the money fund is very small, then the outflow of a large amount of funds is likely to disrupt its investment plan, block the fund's cash flow, and lead to a sharp decline in the fund's net value.

In addition, the bigger the money fund, the stronger its ability to resist risks. Because when the size of the money fund is large, the proportion of funds that need to be reserved for investors to purchase and redeem is relatively small, and the money fund can use more funds to diversify its investment. This can not only reduce the investment risk of the fund, but also improve the rate of return of the fund.

Second, the larger the size of the money fund, the higher the rate of return?

In a certain range, the size of the money fund is directly proportional to its rate of return, that is, the larger the size of the money fund, the higher the rate of return. When the size of the money fund is too large, it will not be able to take timely measures in the face of risks, but the rate of return may decrease. Although the size of the fund will affect the fund's rate of return to a certain extent, the ability of the fund manager has the greatest impact on the fund's rate of return. Only the decisions made by excellent fund managers can effectively improve the rate of return of funds.

Generally speaking, investors can choose tens of billions of money funds. Hundreds of billions of money funds are a bit too big, which can be said to be giant money funds, such as E Fund. Moreover, the yields of these money funds are generally lower than those of smaller money funds in the same period.