What does a currency fund mean? What does money market fund mean

It doesn't matter how much money you have, you can buy it.

What is a currency type**.

The money market is the investment in money market instruments. Its investments are generally composed of short-term bonds, such as bonds or cash equivalents, including short-term treasury bonds, commercial papers, banker's acceptance bills, bank negotiable certificates of deposit, repurchase agreements and short-term bonds issued by institutions.

Money market instruments range in maturity from 1 day to 1 year, and the level of income is usually 1 to 2 percentage points higher than the interest income from bank deposits. However, countries and regions have minimum investment restrictions on the currency market, usually $10,000 or more, so the main investors in the currency market are institutions, and it is difficult for ordinary individual investors to enter. The money market** pools dispersed funds to invest in the above-mentioned short-term**, giving ordinary investors the opportunity to indirectly access the money market and share in its benefits.

For example, $500 is enough to meet the minimum subscription in most money markets**.

Money markets** are characterized by high security and liquidity, as most of the money market instruments they invest in are low-risk and easy to liquidate. Money markets** are often enjoyed by investors as a good alternative to bank deposits and as a tool for cash management"Quasi-savings"and its income is generally higher than that of bank savings deposits.

The net asset value of a money market** unit is usually maintained at $1. Despite this"$1 net worth"It is not a hard rule and a minimum guarantee, but due to the stability of the short-term income of its investment, the manager can maintain the net value of the unit at the level of 1 yuan for a long time, and the fluctuation is only the level of dividends paid.

If you have 1,000 units, then your net worth is 1,000 yuan, and the standard for measuring the performance is the rate of return, which is reflected in the amount of dividends. For example, if the return rate of the above investment is 6% after 1 year, and you choose to reinvest the dividend, then you will have 1060** units and a net value of 1060 yuan.

The above-mentioned net value of 1 yuan generally belongs to the income distribution type**, that is, investors can choose dividend reinvestment or cash dividends. The other type is the income accumulation type, that is, the dividends are automatically converted into reinvestment, and the net value of a part of the **part of this type may be adjusted to more than 1 yuan after the dividend.

Compared with other types of common, the money market has the following advantages: it is possible to issue checks and pay consumption bills with ** accounts; It is often used as a place to temporarily deposit cash before making a new investment, which can earn a higher yield than a demand deposit, and can be withdrawn for investment at any time. Some investors subscribe to the money market in large quantities and then gradually redeem them for investments**, bonds, or other types of money**.

Many investors also hold cash in the form of money markets** for contingency needs. Some money markets** even allow investors to withdraw their money directly from ATMs. Many money markets can also be converted to others within the same company.

Currency is an open kind of money market instrument that gathers idle funds in the society, is operated by a manager and kept by a custodian, and is specially invested in money market instruments with low risk, which is different from other types of open-ended, with high security, high liquidity, stable returns, and the characteristics of "quasi-savings". Due to the emergence of digital currency, a new type of currency has emerged in the field of currency - virtual currency.

Money emerges with the constant change in the form of exchange value of commodities. At the end of the primitive society, when people's products have surplus, they have to exchange between different tribes, for example, a tribe has surplus sheep and wants to exchange with others, and by chance there is a person who also exchanges with rabbits, and two people meet together, then one sheep is exchanged for five rabbits. As you can see here, the value of 1 sheep is represented by 5 rabbits, and this sheep is now represented by 5 rabbits, which is an original form of value representation.

With the progress of society and the abundance of surplus products, such transactions became more and more frequent, and finally ** and ** were recognized as the material for measuring the value of all commodities, and so money was created.

It can be seen that money itself is a commodity, but this commodity has a special function, it can be exchanged with any other commodity, and acts as a general equivalent.

Answering Hello, currency is an open type of money market instrument operated by a manager and a custodian for custody of funds, which is specially invested in money market instruments with low risk, which is different from other types of open-ended, with high security, high liquidity, stable returns, and the characteristics of "quasi-savings".

4. Dividends are tax-free: the face value of most money markets will always remain 1 yuan, the income is calculated every day, and there is interest income every day, investors enjoy compound interest, and bank deposits are only simple interest. The monthly dividends are carried forward to ** shares, and the dividends are exempt from income tax.

Currency is the investment object of short-term currency market instruments such as central bank bills.

To put it simply,It is a financial management tool like current savings, which can be used and withdrawn at any time, but the potential income is higher than that of bank current savings.

Well, you might be confused. Is it highly profitable to invest in central bank bills? Why can't we invest ourselves and have to hand it over to the ** manager?

This is because the financial instruments invested by the manager are generally very large, and it is difficult for ordinary people to participate directly.

For example, when the bank was particularly short of money at the end of the year, Uncle Wang took 50,000 yuan to the bank's person and said: "I heard that you have been very short of money recently, I have 50,000 yuan here, and I will borrow you for a month, as long as the interest is higher than the one-year time deposit." "Do you think the bank will raise the interest rate because of 50,000 yuan?

Obviously not, just 50,000 is nothing?

However, the manager of the currency is different. At this time, he found the bank and said: "I have tens of billions of funds to lend you, but the interest rate is also higher, how much higher we can discuss, how about it?"

Although the bank was very reluctant, it was indeed difficult to borrow large sums of money, so it had to agree. The interest obtained will first remove the fees charged by the ** itself and the bank's custody fee, after all, the ** company and the bank also have to eat. The rest of the proceeds will be returned to investors.

Therefore, the allocation of currency is equivalent to crowdfunding, you give tens of thousands, I give hundreds, and everyone pools the money together to the ** manager to hold central bank bills, treasury bonds, etc. Reap the benefits.

What is Currency**?

It belongs to the category of investments that are both liquid and profitable. Therefore, as soon as the currency** was launched, it received a warm welcome from investors. It is very suitable for daily idle capital investment.

All in all, there are two important features of money**: first, it has good liquidity, and you can get money at any time if you want to withdraw it;

The second is low risk. As a result, money** has the characteristics of "quasi-savings".

Hello, according to the provisions of the Interim Provisions on the Administration of Money Market ** issued by the China Securities Regulatory Commission and the People's Bank of China, the money market ** is the **investment** that only invests funds in the following money market financial instruments**:

1) Cash; (2) Call deposits, bank fixed deposits within 1 year (including 1 year), and large-amount certificates of deposit; (3) Bonds with a remaining maturity of less than 397 days (including 397 days);

4) Bond repurchase with a maturity of less than 1 year (including 1 year); (5) ** bank bills with a maturity of less than 1 year (including 1 year);

6) Other money market instruments with good liquidity recognized by the China Securities Regulatory Commission and the People's Bank of China. The Interim Provisions on the Administration of Money Market** expressly prohibit money market** from investing in the following financial products:

1)**；(2) convertible bonds; (3) bonds with a remaining maturity of more than 397 days; (4) Corporate bonds with a credit rating below AAA;

5) Other financial instruments prohibited by the China Securities Regulatory Commission and the People's Bank of China. Money market** names often use words like "currency", "cash", "liquidity", "cash", "short-term bonds", and so on.

Currency type is a kind of open-ended, according to the type of financial products invested in open-ended, people divide open-ended type into four basic types: namely, type, hybrid, bond, currency, the first two types belong to the capital market, and the latter type is the money market.

Currency** mainly invests in bonds, central bank bills, repo and other short-term financial products with high security, also known as "quasi-savings products", and its main characteristics are "worry-free principal, convenient demand, regular income, daily recorded income, and monthly dividends".

Currency** only invests in the money market, such as short-term treasury bonds, repos, central bank bills, bank deposits, etc., and there is basically no risk. Its liquidity is second only to the bank's current savings, the income is calculated every day, and the income is generally carried forward into ** shares in a month, and the income is slightly higher than that of a one-year time deposit, and the interest is tax-free.

The most critical difference between currency and other investments depends on the unit.

The net asset value of the money market** is fixed and will not change, generally 1 yuan per ** unit. After investing in the **, investors can use the profits to reinvest, and the investment profits will continue to accumulate and increase the market share owned by investors. For example, if an investor invests 100 yuan in a currency**, he can have 100 ** units, and after L years, if the investment remuneration is 8%, then n The investor will have 8 more ** units, a total of 108 ** units, and the use value is 108 yuan.

The criterion for considering the main performance of the currency** is the rate of return, which is different from the profit of other ** appreciating in the use value of the total asset.

Currency** has good liquidity and high asset safety factor. The key to this feature is that the money market is a low-risk, highly liquid sales market. In addition, investors can not be subject to time constraints, and can sell ** units according to the necessity anytime and anywhere.

Characteristics of the currency type**.

Monetary type** is less harmful. The maturity and repayment date of money market instruments is generally very short, and the average maturity period of the composition of currency** investment is generally 4 6 months, so the risk is low, and its price is generally only harmed by market interest rates, and the investment is low. Currency** generally does not deduct redemption costs, and its period fees are also low, the annual expenses of currency** are about **net asset value, less than the traditional ** annual management method interest rate of 1%.

Currency types are all open-ended. Currency** is generally known as a zero-risk or low-risk investment tool, suitable assets for short-term investment turnover for reserve, especially when the annual interest rate is high, the inflation rate is high, the securities are reduced, and the authenticity is reduced, so that the capital can be protected from damage.