How do money market funds make money? How to buy money market funds to make money

Currency assets are mainly invested in low-risk and short-term currency market instruments, such as treasury bonds, central bank bills, commercial papers, bank certificates of deposit, short-term bonds, etc., which have the characteristics of high security, high liquidity, and stable returns.

Currency ** is the investment bank deposits, treasury bonds, central bank bills, etc., the current annualized return is between to, recommend the currency of Huaxia**, the annualized return since the contract takes effect.

Currencies have no risk, but they don't make much, which is not difficult to explain, because the risk and return are directly proportional.

Currency** does not have subscription and redemption fees, and is mainly used for asset allocation and current use.

The monthly income is not the same, I have been holding CCB currency for a long time, it's okay, Huaxia is also good, and the scale is large.

How does currency ** make money, many people don't know the doorway here!

The main investment directions of the currency** are as follows:

1. Cash; 2. Bank fixed deposits and large-amount certificates of deposit within one year (including one year);

3. Bonds with a remaining maturity of less than 397 days (including 397 days);

4. Bond repurchase with a maturity of less than one year (including one year);

5. ** bank bills with a term of less than one year (including one year);

6. Other money market instruments with good liquidity recognized by the China Securities Regulatory Commission and the People's Bank of China.

At present, the main investment direction of China's currency** is high-credit short-term bonds (duration within 397 days) and bank agreement deposits.

Due to the large amount of funds of the company, as an institution, it can negotiate with the bank for a higher deposit interest than we go to the bank to deposit.

Based on the current currency**10,000 yuan, 10,000 yuan, the 3-month income is about 108 yuan.

The companies with better currency operation include Huaxia ** Company, ICBC Credit Suisse ** Company, China Universal ** Company, E Fund ** Company, Harvest ** Company, etc.

Principle 1: Choose a moderately sized currency**.

1. There is a misunderstanding when ordinary people choose **, they always think that the income of the large-scale ** is good, but the fact is the opposite, those large-scale ** are often not as good as the medium-sized **income. The yield of a currency is in an inverted U-shape with its own size, that is, the yield of a currency that is too small is as low as that of an oversized currency, and the yield of a moderately sized currency is the best.

2. Under the current interest rate level, the yield of currencies with a scale of less than 10 billion is generally around, and the income level of more than 100 billion is difficult to break through 4%, and those with a scale between 100 and 100 billion have the highest yield, and the 7-day annualized rate of return can reach about it.

Principle 2: Try to choose more currencies.

1. The income of the currency is related to the market interest rate, and the market interest rate is generally not very concerned, while the institution will always stare at the market interest rate, as long as the market is a little bit of turmoil, the money is a little tight, they will be redeemed immediately. In 2008, there was an institution-dominated currency** that had to be liquidated due to a large-scale institutional redemption that resulted in losses. Like banks, if all investors redeem them, and the project funds invested have not been fully recovered, a "run" will occur.

The financial strength of each currency is generally relatively small, so there will be no "run" phenomenon, and liquidity and profitability are more guaranteed.

2. The probability of loss of currency ** is extremely small, and the only few cases of loss-making currency ** in history are institutional, so as long as you buy a currency based on **, you will basically not lose.

Extended Materials. Buying skills, knowing these buying skills, can lead to higher returns in the same situation:

First of all, don't choose to subscribe and redeem on Friday. It takes two days to confirm the base of the goods, and there is also a profit on the weekend, but there will be no subscription confirmation on the weekend, and if you choose to subscribe on Friday, you will lose the income of the two days on the weekend.

Secondly, the return of the currency** is variable, and the return at the end of the month and the end of the year is higher. Under normal circumstances, the tighter the market funds, the higher the yield of the currency**, and the end of the month, the end of the quarter, and the end of the year are the peak periods of capital demand, and the yield of the currency ** will be much higher than usual, which is very suitable for subscribing for the currency ** at this time.

The short-term return of currency ** is not high, but in the long run, the income is still good, currency ** is mainly investment cash, bank deposits with a term of less than 1 year (including 1 year), bond repurchase, **bank bills, interbank certificates of deposit, bonds with a remaining maturity of less than 397 days (including 397 days), debt financing instruments of non-financial enterprises, asset-backed ** and so on.

Therefore, the short-term income of the currency is not high, but the long-term holding income is still relatively stable, and there will rarely be losses, but if the deposited funds are more and the holding time is longer, the income will be higher and higher.

Extended Information: What is the typical annual rate of return of money**?

Currency** generally has an annual yield of about 2%, and currency** can generally see the average income level of the last 7 days, which is the data obtained after annualization, and is a reflection of the profit level of the past seven days**, you can refer to this before buying.

However, the annualized return of currency ** is not fixed, and the income of currency ** will change every day, but if the amount deposited is relatively small, the income seen in the short term is also relatively small, so when you hold currency **, you can hold it for a long time.

The net value of the share of currency ** is fixed at 1 RMB, and the income is usually expressed in terms of net income per 10,000 shares per day and 7-day annual yield. Net income per 10,000 shares per day is a data that is averaged over each share of the net income of the money market** operating each day, and then measured and compared on a standard of 10,000 shares. The 7-day annualized rate of return is the annualized rate of return converted from the average daily return of the last 7 natural days.

There are ups and downs, different investment natures, risks and returns are different, it is recommended that you understand the basic information such as the investment direction and risk type of the funds in detail before purchasing, and decide to buy the best products that match your own risk tolerance and asset management needs.

There are 5 key points in choosing a currency**: 1. Scale; 2. Old and new; 3. Ordinary investors are still suitable for Class A**; 4. Funds; 5. Income.

Because of its stable yield and strong liquidity, Currency ** has become a well-deserved king of cash management and is deeply loved by the majority of small partners. So in the face of a wide variety of currencies in the market**, how should we choose if we want high returns?

1) Look at the scale.

Generally speaking, the larger the size of the currency**, the better; Smaller currencies** hold a higher percentage of cash in response to redemptions, resulting in a relatively small amount of money to invest and lower returns.

2) Look at the old and the new.

The older the money market, the more popular it is, and the old ones are generally more mature, with certain investment experience, and more high-yield varieties they hold. It's wise to choose a currency that has been around for a long time and has a relatively stable track record**.

3) Look at A, B

At present, among the 587 currencies, 211 are Class A and 198 are Class B, the main difference between the two is the investment threshold, generally the minimum investment amount of Class A is 100 yuan, and the minimum investment amount of Class B is more than 5 million yuan. From the perspective of income, the income of class B is higher than that of class A, but the threshold is higher, and ordinary investors are still suitable for choosing class A**.

4) The tighter the capital, the more profitable it is.

The yield of the currency is inevitably related to the tightness of the market capital. In 2007 and 2008, money market interest rates were relatively high, and the annualized rate of return on money** at that time also remained above 3%. In 2009, benefiting from the investment policy of 4 trillion yuan, the capital side was extremely loose, the call and repo rates fell back to around 1%, and the yield of the currency ** also fell sharply.

5) Look at the earnings.

There are two main indicators of the return of currency**, one is the yield of 10,000 shares, and the other is the 7-day annualized return. The yield of 10,000 shares refers to a data that spreads the income of the daily operation of the currency ** to each share, and then measures and compares it with 10,000 shares as the standard. The 7-day annualized rate of return refers to the average annual rate of return of currency ** per 10,000 shares** in 7 natural days.

We often hear people around us say: "The yield of this currency ** has broken 2%", and 2% here is the 7-day annualized rate of return of the currency**. When we choose a currency, we can't just look at the 7-day annualized rate of return, but a combination of the two, the 7-day annualized is stable, and the currency ** with a stable return is the best choice.

It refers to a collective investment method of benefit sharing and risk sharing that gathers the funds of many investors through the sale of **shares, forms an independent property, is managed by the custodian, managed by the manager, and invests in the form of a portfolio. Investors can purchase on-exchange through **account**, or purchase over-the-counter** distributed by brokerage after opening **account**.

About the trading rules and the basic knowledge of the company, you can learn in situ through our investment education or easy to learn the gold - discovery - stock brother encyclopedia, easy to learn more financial management courses, teach you how to identify the investment risks of various products, and also tell you about the relevant screening skills and investment methods.

Teaching Paradise**.

After buying, you will get a certain share (which is unchanged), with the rise and fall of the net value, multiplied by the share, it is basically the profit of the profit (of course, deducting the handling fee, etc.), simply speaking, the market value of your account is increasing or shrinking. As long as the ** is not delisted, it can be held forever, and the net value will continue to rise and fall, and the overall value will be gradually improved.

When it rises to a certain extent, the company will reduce its net worth (through dividends or splits).

Dividends are some regular dividends regulated by the Securities Regulatory Commission, or some of them should be adjusted, throw away some bad ones, and turn them into cash and return them to investors (or directly become the corresponding ** shares cumulatively).

Splitting, that is, the company does not throw away the form, in order to allow more investors to collect their funds in order to continue to buy some better ones. Because investors see that the net value is very high, they dare not buy, so return the net value to the face value (1 yuan), and a large amount of new funds will enter.

For old users, there is no need to worry about the loss of long-term holding, although the net value is reduced, the company will convert all the adjusted parts into shares to old users (or directly realize them to old users), so that the share will increase, and the market value will not be lost.

How to make money by investing in **, a trick, figuring out the classification is the premise of making money!

It is the basic capital that the bank uses, you buy the bank's, the bank buys it with your money, and then gives you a small part of the money you earn, and most of the money goes to the manager. If you lose, you will also lose money.

**Under normal circumstances, it is necessary to circulate to make money, such as making investments or cooperating with other companies to distribute dividends.

How is it profitable? Making money is to earn the difference by investing in investment products such as **, ** and other investment products.

This depends on what type of ** you invest in, if it is currency**, it is a large deposit, treasury bonds, such a stable income!

If you buy bonds**, lend the money to the enterprise, finance, and repay the principal and interest at that time, and earn interest!

If you buy ****, then you will earn dividend yields, money from investors' mood fluctuations, and money from business profits!

**It's better to do some daily income financial management

There are many kinds: the conservative type is the currency, and its investment target is the currency, which is the time value of the funds earned by the capital preservation. The positive type is the bond ** through the investment to buy bonds to obtain income, this ** does not protect the principal but the income will be higher than the currency**.

The aggressive investment target is **, this kind of ** does not protect the principal, when the ** big fall will lose money when the ** big rise will make more.