What are the product features of money market funds?

Knowledge: What are the product features of currency How to choose a currency. Currency is an open type of money that gathers idle funds in society, is operated by a manager, and is kept by a custodian, which is specially invested in risk-free money market instruments, which is different from other types of open-ended, with high security, high liquidity, stable income, and the characteristics of "quasi-savings".

1.Principal Safety:

Most of the money market investment varieties determine that the risk is the lowest in all kinds of money, and the currency contract generally does not guarantee the safety of the principal, but in fact, due to the nature of the currency, the loss of the principal rarely occurs in reality. In general, currency** is considered a cash equivalent.

2.Strong cash flow:

Liquidity is comparable to demand deposits. **Convenient to buy and sell, short time for funds to arrive, high liquidity, generally** redemption of one or two days of funds can be received. At present, the company has opened the instant redemption business of currency, which can be received on the same day.

3.Higher yield:

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 in general institutions, the money market can also enter the interbank bond and repurchase market, and the bank bill market for investment, and its annual net yield can generally be compared with the one-year fixed deposit interest rate, and the annual income is shown below**, which is higher than the income level of bank savings in the same period. Not only that, but the money market** can also avoid hidden losses.

When inflation occurs, real interest rates can be low or even negative, and the money market** can keep abreast of interest rate changes and inflation trends to obtain stable and higher yields.

4.Low investment costs:

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. The first subscription is 1000 yuan, and the second purchase is increased in units of 100 yuan.

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.

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.

Looking at the advantages and disadvantages of different scales, if the scale is small, in the environment of declining money market interest rates, the continuous entry of incremental funds will quickly dilute the investment income of the currency, and the large scale will not have such concerns. In an environment where money market interest rates are rising, smaller ones will turn around and yields will be rapid. Taking a combination of factors, investors should choose a currency that is moderately sized and has strong operational capabilities**.

Look at the old and new money markets, the older the more popular, the old ** is generally more mature in operation, has a certain amount of investment experience, and holds more high-yield varieties. It's wise to choose a currency that's been around for a long time and has a relatively stable track record**.

Hello, the main features of the money market**:

1) **The net value of the unit is fixed and always remains at 1 yuan;

2) High investment security and good liquidity;

3) Money market instruments usually have a short maturity date, low investment risk, and principal security;

4) Investors can buy and sell freely, and can be redeemed at any time as needed, and the redemption funds arrive quickly;

5) Stable investment income and low cost;

6) Investing in the money market** is generally free of subscription fees, subscription fees and redemption fees, and management fees and custody fees are also low.

Currency** has the following characteristics:

First, the risk is small. Because the investment is a high-value short-term credit rating, such as bills, certificates of deposit, bills of exchange, etc.

Second, high liquidity. Currency** is generally available in a day or two after redemption.

Third, the cost is low. Compared with others, the handling fee is the least, and there are generally no subscription and redemption fees.

Fourth, the income is higher than that of current accounts. Although the return of currency** is not so high compared with wealth management products, it is much higher than bank demand.

Extended information] Money is a product of commodity exchange, a commodity that is separated from the commodity world in the process of commodity exchange and fixedly acts as a general equivalent, and is a kind of currency. Commonly known as money.

Currency (CCY) is a tool for measuring **, a medium for purchasing goods, a means of preserving wealth, a contract between the owner of property and the market on the right of exchange, and is essentially an agreement between the owner. Contains currency in circulation, bank bills, etc.

Proceeding from the functions of money as a means of circulation and means of payment, the nomenclators of money deny the substantive value of money and believe that money is only a symbol and a nominal existence. The monetary metal theory is a product of the gold and silver standard of money, and its influence is waning with the collapse of the gold standard in the early 20th century. In the 21st century, in Western money, the dominant thing is the nomenclature of money, which can be seen from the definition of money in Western economics textbooks.

The famous American economist Mishkin's "Monetary Finance" defines money as: "Money or money supply is anything that is generally accepted in the payment of goods or services or in the repayment of debts." ”

Historically, these two viewpoints have not accurately grasped the essence of money, and they have been disturbed by the form of money, and have tried to define the essence of money from the form of money, so they cannot give a complete and unified definition of money. In fact, money, in terms of its intrinsic commodity value, is not a choice of having or not having two breaks, but a gradual process of quantitative change. The commodity value of electronic money is almost 0, paper money is close to 0, coins and copper plates are slightly more valuable, and *** currencies such as gold and silver are worth more.

This process of quantitative change reveals the unity of the essence of different forms of money, that is, money as a product of the contract, its exchange value is agreed by the contract, when the market is stable and the trust is high, people accept paper money and other nominal money, when the market is unstable and the trust is low, people are more inclined to accept metal money.

The above discussion of the nature of money is understood from the perspective of economics, and we should also examine the political premise and political background of money. From the point of view of political science, the service of money to the regime is subject to power. Historical common sense points out:

The collapse of a regime is often accompanied by the failure of its currency, the establishment of a regime is often accompanied by the establishment of its currency, and the image of a regime is often accompanied by the circulation of its currency. From this, it can be concluded that the essence of money is sovereign credit.

The money market** is characterized by low risk and good liquidity compared to other types of **.

It is an ideal tool for short-term investment and temporary cash storage, with a much higher yield than demand deposits, and the transaction is convenient and fast, and the funds arrive in the account very quickly. In addition, the original entry threshold of China's money market is very high, which restricts the entry of general investors to a large extent, and the investment threshold of the money market is extremely low, providing an important channel for ordinary investors to enter the currency market.

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 investment, which can earn a higher yield than a demand deposit and can be withdrawn for investment at any time.

1. The net asset value of the unit is fixed: after investing in the **, the investor can use the income to reinvest, and the investment income will continue to accumulate and increase the share owned by the investor.

2. A unique standard for measuring the performance of the money market: The standard for measuring the performance of the money market is the rate of return, which is different from other standards for increasing the value of net assets.

3. Good liquidity and high capital security. The characteristics of the money market with good liquidity and high capital security are mainly due to the fact that the money market is a low-risk, high-liquidity market. At the same time, investors can transfer ** units at any time according to their needs without being limited by the maturity date.

4. Low investment cost. The Clan Reputation Money Market** usually does not charge redemption fees and its management fees are also low, with an annual management fee of approximately 0 25% 1% of the net asset value of the money market**, which is lower than the traditional annual management fee of 1% 2 5%.

1.The net unit value of the money market** will not change, and it is generally one dollar, and the investment threshold is also very low;

2.The main way to judge whether the money market is good or bad is to look at its yield;

3.The money market** is very liquid, all open, and the risk is very low;

4.The money market has low management fees and no redemption fees;

5.Money markets** are generally very short-lived.

Further information: Money market fund** (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).

As the name suggests, money market is the object of investment in money market instruments.

At present, the investment scope of the money market mainly includes: short-term treasury bonds (with a remaining maturity of less than 39 days)** bank bills, bank-backed commercial bills, banker's acceptance bills, bank fixed deposits, large-amount negotiable certificates of deposit, repurchase within one year and other money market instruments.

Because the currency ** is different from the general open-ended**, it generally has "xx cash", "xx currency**" and so on in the name.

In fact, the scope of the above-mentioned money market investment is a variety of high safety factor and stable income of losses, so for many enterprises and individuals who want to avoid the risk of selling this hole in the market, the money market is a natural haven, which can not only obtain higher income than the interest on bank deposits under normal circumstances, but also protect the safety of the principal.

In addition to the characteristics of stable returns, strong liquidity, low purchase limits, and high capital security, the money market** also has some other advantages.

For example, you can use the ** account to issue checks and pay consumption bills; 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.