What is a currency fund

1, what is money fund

Money fund is a kind of open-end fund, according to the open-end fund invested in the category of financial products, people will open-end fund is divided into four basic types: namely, equity funds, mixed funds, bond funds, money funds, the first two types of capital markets, the latter type of money market. Currency funds are mainly invested in bonds, central bank bills, repo and other short-term financial products with high security, also known as "quasi-savings products", whose main features are "no worries about the principal, the convenience of the current period, regular income, every diary income, monthly dividends". Under normal circumstances, the probability of profit for investors is 99.84%; the expected rate of return is between 1.8-2%, which is higher than the interest rate of 1.8% for one-year time deposits, and there is no interest tax; it can be redeemed at any time, and the funds can generally be redeemed the next day to the account, which is very suitable for the pursuit of low-risk, high-liquidity, and stable income of the units and individuals.

2. What is the difference between monetary funds and other open-ended funds

Money funds have the following characteristics compared with other funds:

l The main difference between monetary funds and other funds investing in stocks is that the net asset value of the fund units is fixed and unchanged, which is usually $1 per fund unit. After investing in the fund, the investor can use the proceeds to reinvest, the investment income will continue to accumulate, increasing the share of the fund owned by the investor. For example, an investor to $ 100 invested in a currency fund, can have 100 units of the fund, l years later, if the investment return is 8%, then the investor is more than 8 units of the fund, the total **** 108 units of the fund, valued at $ 108.

l The measure of how well a money fund performs is the yield, which is different from other funds that profit from NAV appreciation.

l Money funds are liquid and capital secure. These characteristics stem mainly from the fact that the money market is a low-risk, highly liquid market. At the same time, investors can transfer fund units at any time as needed without date restrictions.

l Money funds are low risk. The maturity dates of money market instruments are usually very short, and the average duration of a money fund's portfolio is usually 4 to 6 months, so the risk is low, and its price is usually only affected by market interest rates,

l Low investment costs. Currency funds usually do not charge redemption fees, and their management fees are also lower, the annual management fee of currency funds is about 0.25% to 1% of the net asset value of the fund, which is lower than the traditional annual management fee rate of 1% to 2.5% of the fund.

l Currency funds are all open-ended funds. Currency funds are usually regarded as risk-free or low-risk investment tools, suitable for short-term investment of capital to generate interest for emergencies, especially in the case of high interest rates, high inflation, securities liquidity declines, the credibility of the reduction, the principal can be saved from loss.

3. What are the investment objects of the monetary fund

The monetary fund is a fund that invests in money market instruments. It mainly invests in the following financial instruments:

a) cash;

b) bank time deposits and large certificates of deposit with a maturity of less than one year;

c) bonds with a remaining maturity of less than three hundred and ninety-seven days (including three hundred and ninety-seven days);

d) bond repo with a maturity of less than one year (including one year);

e) central bank bonds with a maturity of less than one year (including one year);

e) central bank bonds with a maturity of less than one year (including one year); and within one year (including one year);

f) other money market instruments with good liquidity recognized by the China Securities Regulatory Commission and the People's Bank of China.

4. Whether there is a time limit for money funds and how many days for funds to arrive if redeemed in the middle

Money funds are funds that can be purchased and redeemed at any time except on statutory rest days, and there is no time limit. Fund companies generally provide for redemption of shares, the funds to the account for 2 trading days (T + 2 days).

5, the reality of the advantages of the money fund

1) to improve the return on demand savings, the current average return of money funds is about 1.8%, higher than the bank demand savings rate of 0.58% (after-tax return).

2) The practice of carrying forward returns on a monthly basis provides compounding returns that bank deposits cannot currently provide.

3) Effective hedge against interest rate risk during the rising interest rate phase. The rise in interest rates has provided money funds with a higher yielding investment variety, and it can be said that the return of money funds rises with interest rates. This has been proved before and after the interest rate hike in 2004.10.

6, how to buy money funds, there are fees?

The purchase and redemption of money funds are completely free of commission, and it can also be said that money funds are an open-ended fund without any fees. It is recommended to purchase in the securities company for the following reasons:

1) Purchase of money funds is an investment rather than savings behavior, the purchase of funds in the securities company can get professional staff to provide you with the most timely advantage of the varieties and the most accurate investment portfolio, so that you can maximize the return;

2) individual securities company advanced "fund supermarket "

7. How to get the daily return of money fund

You can inquire through the relevant financial and fund management company's website, or you can inquire through the distribution outlets. inquire through the distribution outlets.