When we invest, we should choose different investment varieties, among which monetary fund is a very good choice. But how to choose a monetary fund with good long-term returns? How can money funds choose high returns? Let's learn together.
The quality of monetary funds is very serious. The long-term benefit of monetary funds is only about 2-3%, but we still have a way to select monetary funds with better long-term returns. First, let's understand what constitutes the return of monetary funds.
货币基金的收益=投资收益-投资费用
The income gap of different monetary funds will not be too large, but the investment costs of different monetary funds are quite different, so we focus on the investment costs.
What are the expenses of IMF?
1. Management fee and custody fee: any fund has management fee and custody fee, and monetary fund is no exception. The management and custody fees of the monetary fund are between 0.15% and 0.4% per year. The expenses shall be deducted from the net fund value on a daily basis.
2. Subscription fee and redemption fee: the subscription fee and redemption fee are generally 0 and free of charge. However, it does not mean that the monetary fund has no other fees. If the monetary fund does not charge the subscription fee and redemption fee, it will charge the sales service fee.
3. Sales service fee: The sales service fee is charged by the number of days, and the fund shares held for a few days will be charged for a few days. The sales service fee is generally between 0.01% - 0.25%/year.
To sum up, the costs of monetary funds are mainly management fees (0.15% - 0.4%/year) and sales fees (0.01% - 0.25%/year). It can be seen that there is a big difference between the monetary funds with high rates and those with low rates, so the monetary funds with low rates have great advantages.
We add the management fee and sales fee to the total cost of the monetary fund. The long-term income of monetary funds is 2-3%. If the rate is too high, a large part of our income will be charged by the fund company. Therefore, we should select the lowest long-term income rate for monetary funds, and the rate should be better controlled below 0.3%.
What about the low cost of those money funds? Generally speaking, most of the money funds with lower rates are Type B funds. The name of these monetary funds will be followed by the capital letter B. This type of monetary fund is a type B monetary fund, which is mostly used by institutional investors. The threshold for most Class B funds is more than 5 million yuan, and the threshold for a few Class B funds is 100 yuan.
