Investment fields of the Monetary Fund:
1. The assets of the Monetary Fund are mainly invested in short-term monetary instruments (generally within one year, with an average maturity of 120 days), such as treasury bonds, central bank bills, commercial bills, bank deposit certificates, short-term treasury bonds, corporate bonds (with high credit rating), interbank deposits and other short-term marketable securities. ?
2. The investment scope of these money market funds are all varieties with high safety factor and stable income. Therefore, for many enterprises and individuals who want to avoid the risks in the securities market, money market funds are a natural haven. Under normal circumstances, you can get higher income than the interest on bank deposits, but the money fund can't guarantee the safety of the principal.
Extended data:
Characteristics of monetary fund investment:
1, the principal is safe
Most money market funds have the lowest risk among all kinds of funds, and money fund contracts generally do not guarantee the safety of principal, but in fact, due to the nature of funds, money funds rarely lose principal in reality. Generally speaking, money funds are regarded as cash equivalents. ?
2. Strong capital flows
Liquidity is comparable to demand deposits. The fund is easy to buy and sell, with short time to receive funds and high liquidity. Generally, the funds will arrive in a day or two after redemption. At present, some fund companies have opened the instant redemption business of money funds, which can be received on the same day. ?
3. Higher output.
Money market funds can not only invest in investment tools that ordinary institutions can invest in, such as exchange repurchase, but also enter the inter-bank bond and repurchase market and the central bank bill market for investment. Generally, their annual net return rate can be compared with the one-year time deposit rate, which is higher than the income level of bank deposits in the same period.
4. The investment cost is low.
Money market funds are generally free of handling fees, and the subscription fee, subscription fee and redemption fee are all zero, so it is very convenient for funds to enter and exit, which not only reduces the investment cost, but also ensures liquidity. For the first subscription/subscription, 1000 yuan, and for the second subscription, 100 yuan will be increased. ?
5. Dividends are tax-free
Most money market funds always have a face value of 1 yuan, and the income is calculated every day, and there is interest income every day. Investors enjoy compound interest, while bank deposits are only simple interest. Monthly dividends are carried forward as fund shares, and dividends are exempt from income tax.
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