Recently, you may hear the term Money Market Fund (MMF). Because of the previous wave of Bank of America bankruptcies, many people have transferred their deposits to MMF. In fact, the nature of MMF is very similar to bank fixed deposits. They are all investment instruments with very low risk and steady interest income. Tonight Yatsuki will share with you some information about MMF. When we place money on a fixed deposit (FD), we actually lend money to the bank, and the bank pays us interest. When we invest our money in MMF, that is, we lend money to the government, and the government gives us interest, it's very safe. MMF is actually a type of bond, but it's a very safe bond because it's a government bond that is about to expire. The risk of bonds can be large or small; it depends on who issues the bonds. If it's a company, then it's likely to go out of business and the bonds will default. But if the bonds are issued by the government and the government goes bankrupt, then your currency will also depreciate drastically. No matter what product you invest in, the outcome is actually the same. Simply put, apart from government bankruptcy, investing in MMF is equal to zero risk, so it's perfect for people who want to save FD. Because MMF has the following advantages over FD.
First, MMF interest is calculated daily
As long as you deposit money into MMF today and start calculating interest the next day, you'll see that your money is increasing every day, and you're in a happier mood.
Second, MMF has no deadline...