What does money fund mean? In order to obtain higher returns in investment, we need to understand all kinds of investment methods, among which monetary fund is the more important one. What does monetary fund mean? What are its characteristics? Here is a brief explanation for you.
The typical representative of monetary funds is Yu'e Bao. Most of us began to understand that monetary funds started from Yu'e Bao. Money funds mainly invest in the money market, which is mainly open to investors with a large amount of funds, and the investment threshold is very high. Later, fund companies developed the tool of money funds to gather small funds to make large funds, so that they can participate in the money market. This is the origin of money funds.
Investment objects of monetary funds: mainly bank fixed deposits, large deposit receipts, short-term bonds, bills, etc. within one year.
Characteristics of IMF:
1. Money funds almost never lose money. In most cases, money funds earn positive returns every day;
2. Monetary funds can be accessed flexibly, and some funds can be received in one day, which is suitable for handling small change;
3. In the past few decades, the long-term average yield of all domestic monetary funds was about 2-3%.
There are many special features of monetary funds, for example, the way of showing the income of monetary funds is different from other funds. The net value of most money funds is 1 yuan. For example, 10000 cents of money funds is 10000 yuan.
Revenues of monetary funds:
1. Unit income per 10000 funds: it means that if we hold 10000 yuan of monetary funds, how much money can we get in a day.
2. 7-day annualized rate of return: It is to calculate the income of the last 7 days (including holidays) and convert it into the annual rate of return. This is a calculated income, but it does not mean that such a high income will be obtained in the next year.
Every 10000 returns and 7-day annualized return are current returns, which does not represent future returns, so it does not mean that the current high return will definitely lead to this return in the future.
