What is a currency fund? How is the Wells Fargo Timeless Money Market Fund?

Currency**, mainly investing in short-term currency instruments such as bills, the biggest feature is that the product risk is low and the income is stable; In addition, the currency has a low entry threshold and strong flexibility, and investors can convert the currency into other products that conform to the market at will as the market changes. Wells Fargo Tianshi currency**, the income is good, relatively stable.

Wells Fargo's Timeless Currency is graded, and the difference between A and B is similar to that of most grades.

Structured fund, also known as "structured", refers to a variety of products with a certain difference in risk-return performance through the decomposition of income or net assets under a portfolio. Its main feature is that the product is divided into two or more types of shares, and different income distributions are given respectively. The sum of the net value of each sub-class of the grading and the proportion of the share is equal to the net value of the parent **.

For example, the net value of the parent ** split into two types of shares = the net value of the sub-base of class A x the proportion of the share of A + the net value of the sub-base of class B x the proportion of the share of B. If the parent is not split, it is an ordinary ** in itself.

The popular explanation of financing grading** is that the assets of share A and share B are invested as a whole, in which the person holding share B pays the agreed interest to the holder of share A every year, and the overall investment profit and loss after the interest payment is borne by share B. Taking a financing grading model graded product X (X is called the parent **) as an example, it is divided into A share (agreed income share) and B share (leveraged share), A share agrees on a certain rate of return, **X deducts the principal of A share and accrued income All remaining assets are classified into B share, and the loss is borne by the holder of B share to the extent of the net asset value of B share. When the overall net value of the parent ****, the net value of share B takes precedence**; Correspondingly, when the overall net value of the parent ** rises, the net value of share B will increase faster after providing the income of share A.

Share B usually obtains a certain degree of leverage by participating in the distribution of residual income or bearing losses, and has a more complex internal capital structure, and the non-linear return characteristics make it implied options.

According to the investment nature of the graded parent, the parent can be divided into graded type (most of which are graded indexes) and graded bonds. Graded bonds** can be divided into pure debt grading**, hybrid bond grading**, and convertible bond grading**, the difference is that pure bonds** cannot be invested in**, hybrid bonds** can be invested with no more than 20% of assets**, and convertible bonds** are invested in convertible bonds.

According to the nature of the graded sub**, the Class A share in the sub** can be divided into a fixed-term Class A agreed income share** and a perpetual Class A agreed income share**; The Class B share in the sub-** is also known as leverage**. Leverage** can be divided into **Type B Leveraged Shares** (most of which are leveraged index**), Bond-type Class B Leveraged Shares** (Leveraged Bond Base), Reverse Leverage**, etc.

I guess you can only be a b. A requires that the ** share is more than 5 million. If you're more than 5 million, you're A, otherwise you're B. The funds are operated uniformly, but the cost of A is low.

In principle, the risk of currency ** is lower, but last year the China Securities Regulatory Commission issued the "Regulations on the Management of Liquidity Risk of Public Offering of Open-ended Investments", which restricted the remaining term and credit rating of currency ** investment targets, resulting in very low returns now. Bonds** are less restricted, so yields are higher than currencies**.

Wells Fargo** manages a total of 120 public offerings**, with a scale of up to 400 billion, and its strength should not be underestimated. Now you can pay attention to the short-term bonds issued by Wells Fargo, which are very suitable for investment and can be used as the first choice for investment bonds.