Money Market Funds, What Are Money Market Funds?

The income is very stable, but the income is not high.

<> Currency**. It is said to be "quasi-savings".

Now, the interest rate on deposits is lower than the inflation rate, and deposits have been depreciating. There are 1,000 oranges, and I want to manage my finances, but I don't want to take too much risk.

In order to attract funds, banks have introduced large certificates of deposit (CDs) with interest rates higher than the inflation rate. But with 100,000 or 100,000 as the minimum investment unit. Oranges want to buy but can't afford them.

At this time, there was a ** company that said that you small investors gave me money, and we would have more money when we got together, and the interest rate would be higher if we deposited together, so it launched a currency ** to invest in this kind of large deposit certificate with a higher interest rate.

The Birth of Money**] In October 1972, Savings** purchased $300,000 in high-interest rate fixed savings and gave $1,000 as an investment unit to small investors**. In this way, small investors enjoyed the return on investment that only large companies can obtain, and at the same time had higher cash liquidity, and the first money market in history was born.

<> Currency**. Currency is an open kind of gathering idle funds in the society, which is operated by the manager and invested in the money market, and the custodian keeps the funds.

Investment: Short-term currency instruments (generally with a maturity of less than one year, with an average maturity of 120 days), such as treasury bonds, central bank bills, commercial papers, bank certificates of deposit, short-term bonds, corporate bonds (with higher credit ratings), interbank deposits and other short-term valuables.

It has high security, high liquidity, and stable returns. It has the characteristics of "quasi-savings".

The money market is a natural safe haven, and under normal circumstances, it can obtain a higher income than the interest on bank deposits, but the currency does not guarantee the safety of the principal (but in fact, due to the nature of the group, the currency rarely loses the principal in reality. In general, currency** is considered a cash equivalent. )

Product Features: 1.Principal security.

In general, currency** is considered a cash equivalent.

2.Strong cash flow.

It is convenient to buy and sell, and the funds arrive in the account in a short time, and the funds can be redeemed in one or two days. At present, the company has opened the instant redemption business of currency, which can be received on the same day.

3.The yield is higher.

Most money markets** are generally higher than the level of income on bank savings over the same period.

4.Low investment costs.

Buying and selling the money market** is generally free of handling fees, and the subscription fee, subscription fee, and redemption fee are all 0.

5.Dividends are tax-free.

Most money market ** face value will always remain 1 yuan, the income is calculated every day, there is interest income every day, investors enjoy compound interest, and the balance of bank deposits is only a single or troubled profit. The monthly dividends are carried forward to ** shares, and the dividends are exempt from income tax.

Money Market Funds** (MMF) refers to an investment that invests in the money market for a short period of time (less than one year, with an average maturity of 120 days). The ** asset is mainly invested in short-term currency instruments such as treasury bills, commercial papers, bank certificates of deposit, bank acceptance bills, short-term bonds, corporate bonds and other short-term valuable**.

There is only one way to pay dividends in currencies – dividends are reinvested. In the money market, each unit is always kept at 1 yuan, and the income after exceeding 1 yuan will be automatically converted into **shares, and how many **shares you own is how many assets you have. While other open-ended ** shares are fixed and the net value of the unit is accumulated, investors can only rely on the annual dividend to achieve income.

Features of the money market**.

Among all wealth management products, bank savings, bonds, etc., which can guarantee capital and have stable income. **Divided into many categories, the money market** is one of them, but many people don't know about it, so let me explain to you what the money market is**.

Money Market Fund (MMF) refers to an investment that invests in the money market in the short term (less than one year, with an average term of 120 days). The **asset is mainly invested in short-term currency instruments, such as treasury bills, commercial papers, bank certificates of deposit, short-term bonds, corporate bonds and other short-term valuable searches.

**Each unit is always kept at 1 yuan, and the income after exceeding 1 yuan will be automatically converted into **shares** on time, and how many **shares you own is how many assets you have. The other open-ended ** is a fixed share, the net value of the unit is accumulated, and investors can only rely on the annual dividend to achieve income.

There are several money markets in the market, such as Huaan Cash Earnings, Bosera Cash Earnings, China Merchants Cash Enhancement, Southern Cash Enhancement and Huaxia Cash Enhancement. According to the data published on the daily ** website, on August 9, 2018, the return per 10,000 cents of Huaan Cash Fuli Money A (040003) is, and the seven-day annualized rate of return is.

In addition to the characteristics of stable income, strong liquidity, low purchase limit and high capital security, the money market has some other advantages, such as the ability to issue checks and pay consumption bills with the ** account; It is often used as a place to temporarily deposit cash before making a new contribution to the 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 money market** for emergency needs.

Some money markets** even allow investors to withdraw their money directly from ATMs.

After understanding what the money market is, you should be able to see that the money market is very suitable for financial managers who do not have many deposits and usually have more economic expenditures.

Money market refers to a type of investment that is short-term valuable in the money market. The ** asset is mainly invested in short-term currency instruments such as treasury bills, commercial papers, bank certificates of deposit, short-term bonds, corporate bonds, interbank deposits and other short-term valuable**.

1. Product characteristics of the money market**.

1. Principal safety.

Since most money markets mainly invest in low-risk varieties such as treasury bonds, financial bonds, central bank bills, bond repurchases, interbank deposits and distributions with a remaining maturity of less than one year, these investment varieties determine that the money market is the lowest risk among all types, and in fact ensures the safety of the principal.

2. Strong capital flow.

Liquidity is comparable to demand deposits. **Convenient to buy and sell, short time for funds to arrive, high liquidity, generally** redemption of two or three days of funds can be received.

3. The yield is higher.

Most money markets** generally have the same level of return as an investment in Treasury bonds. In addition to investing in exchange repurchase and other investment tools that can be invested by general institutions, the money market can also enter the interbank bond and repurchase market, and the bank bill market for investment, with an annual net yield of 2%-3%, and the recent yield has reached a level much higher than the income level of bank savings in the same period. Not only that, but the money market** can also protect against hidden losses and protect against inflation.

When inflation occurs, real interest rates can be low or even negative, and the money market** can grasp interest rate changes and inflation trends in a timely manner, obtain stable income, and become a tool to resist prices**.

4. Low investment cost.

Buying and selling money market** is generally free of handling fees, subscription fees, subscription fees, and redemption fees are all 0, and it is very convenient for funds to enter and exit, which not only reduces investment costs, but also ensures liquidity.

5. 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. The monthly dividends are carried forward to ** shares, and the dividends are exempt from income tax.

In addition, the general money market** can also be converted with other open** under the **management company, which is efficient, flexible and low-cost. When the bond market is good, it can be converted into a bond type, and when there is no good opportunity in the bond market, the money market is a safe haven with good funds, and investors can grasp various opportunities in the bond market and the money market in a timely manner.

2. What are the varieties in the current currency market?

At present, there are several money markets in the market, such as Hua'an Cash Income, Bosera Cash Income, China Merchants Cash Value-Added, Southern Cash Profit and Huaxia Cash Profit.

3. List of currencies**.

Southern Cash Gain** (202301).

Hua-An Cash Fuli** (040003).

ChinaAMC Cash Profit Enhancement Rules**(003003).

The Commodity Rental Market is an open-ended short-term investment in the money market. **Property mainly focuses on short-term monetary instruments, such as treasury bills, commercial bills, bank deposit certificates, banker's acceptance bills, short-term bonds, corporate bonds and other short-term instruments. The money market** is safe, and the level of security is very high.

There is only one way to pay dividends in the currency type - dividends to investment. Each unit in the money market is always maintained at 1 yuan, and the income after exceeding 1 yuan can be automatically converted into **Qingzhao shares, that is, there are as many **shares as there are assets. However, other open types have a fixed market share, and the net value of the unit is cumulative, and shareholders can only rely on annual dividends to achieve income.

After the currency base auction which gold share is confirmed, it can be redeemed, and it will generally arrive in one or two days after redemption, which is very flexible, and can solve the problem of financial difficulties when the money is urgently needed, and it can be redeemed in one or two days. Compared with others**, the transaction fee is the lowest, there is often no subscription and redemption fee, and the management fee during the period is also very low, basically in between. Although the return of currency** is not so high compared with wealth management products, it is much higher than bank demand.

The money market is a kind of short-term investment in the money market with a valuable open **, with good liquidity, low risk, capital security, low investment cost and the net asset value of the unit remains unchanged. The net asset value of a money market** unit is usually maintained at $1, and gains over $1 are automatically converted into shares. Investing in the money market is usually a short-term investment, with an average investment of 120 days or less than a year.

1. The biggest feature of the money market is that its net value is generally fixed, and the income will be automatically converted into a share;

2. For the money market, the standard for measuring its quality is the rate of return;

3. The money market has high capital security and good liquidity, and investors can buy and sell at any time according to their needs;

4. The risk of the money market is low, and it is generally only affected by the market interest rate;

5. The money market** has low investment costs, the money market** management fees are low, and no redemption fees are generally charged;

6 The money market** is open-ended, and it can be purchased and redeemed in the market.