Investors' stock accounts will have more or less some idle funds at this stage. And as deposit interest rates continue to fall, many investors find that their deposit returns are greatly discounted, and spare money seems to be less and less cost-effective in deposits, so some investors turn their attention to other cash management tools, hoping to find a "good guy" who can work for themselves to earn interest in these tools.
And there are so many products on the market, how to choose the right one? The editor thinks that the following aspects can be considered.
One is the liquidity of the product.
The market is changing rapidly, and whether they can take out the money in cash management tools to invest in stocks in a timely manner when there is a good opportunity to invest in stocks should be a matter of concern for many investors.
At the same time, in life, there will always be some places that need money from time to time: the brand you pay attention to is new, you see your favorite clothes and bags when you go shopping, and you want to travel during the holidays...... will bring some unexpected expenses to yourself. When money is needed, it is particularly critical whether these idle funds can be withdrawn in time.
The second is the risk of the product.
Since it is an idle capital investment, everyone naturally hopes that their principal will not be lost while obtaining profits. There are many examples of investors who blindly pursue high returns, choose some products that exceed their risk tolerance, or even listen to the propaganda of illegal institutions, and choose some products that wander on the edge of the law, which ultimately leads to a significant loss of their principal. At this time, it is particularly important to restrain your greed and choose a "reliable" product.
The third is the expected return of the product.
The main purpose of investors to invest and manage their money with idle funds is to obtain income. If you want to find a product with relatively stable returns, investors need to make more efforts to find it.
Some investors may still be confused, there are so many products on the market, how can you find a product that does well in these aspects?
Xiaobian would like to recommend a product to you here: Huabao Tianyi ETF · 511990。
Why Huabao Tianyi ETF · Is 511990 a "good guy"? What are the advantages of this product? The editor will take you to find out.
1. Strong liquidity
The scale of Huabao Tianyi, the transaction situation in the secondary market, and the trading mechanism all provide multiple guarantees for the liquidity of the product.
In terms of scale, as of December 31, 2023, the scale of Huabao Tianyi was 92.219 billion yuan, ranking among the top three funds in the two cities.
In terms of turnover, as of the end of the first quarter of 2024, the average daily turnover of Huabao Tianyi during the year was 14.831 billion yuan, ranking first among all on-exchange currency ETFs! Far more than all stocks and funds in the two cities.
In addition, so far, there is no upper limit on the subscription and redemption of Huabao Tianyi's on-exchange and off-market shares, which is convenient for customers to participate and withdraw at any time.
Most importantly, when investors find good opportunities for stock investment, the high liquidity of Huabao Tianyi can also help investors capture fleeting market opportunities. The "Intraday Turnaround" (T+0) feature of Huabao Tianyi's on-exchange shares makes stocks and money market funds "one-click communication":
"Same-day turnaround" means that after buying the shares of Huabao Tianyi on T day, the fund shares will be confirmed on the same day (T day) and the income will be started, and the fund shares can be redeemed on T day and sold on T day.
After selling the shares of Huabao Tianyi on T day, the funds are immediately available (you can buy stocks and other on-market varieties).
It is worth noting that there will be no transaction costs for the "T+0 turnaround" transaction of Huabao Tianyi's on-site share through a brokerage.
2. Low risk and stable historical returns
Huabao Tianyi does not invest in stocks, but only invests in money market instruments with good liquidity such as cash and call deposits. At the same time, Huabao Tianyi's historical return is better, as of December 31, 2023, the average 7-day annualized return since 2023 is 1.66%.
In terms of risk measures, the annualized volatility of Huabao Tianyi in 2023 is only 0.0071%, which is the top 5 with the lowest volatility among all funds in the two cities.
3. Compared with reverse repurchase and some similar products, it has significant advantages
In addition to the characteristics of liquidity, risk and expected return, which are widely concerned by investors, Huabao Tianyi also has advantages in many aspects compared with reverse repurchase and other similar products.
Compared with bond repurchase, Huabao Tianyi's on-market share and bond repurchase can be seamlessly connected, and Huabao Tianyi's on-market share also has multiple advantages such as more convenient trading, more stable price, can be sold on the same day after purchase, lower participation threshold, and higher yield.
4. Huabao Tianyi can also be used as a financial margin.
Huabao Tianyi's on-exchange shares belong to the category of exchange-traded funds on the Shanghai Stock Exchange, which can be used as a margin for margin trading and can participate in margin trading without barriers, with a conversion rate of up to 95%. If an investor uses 2 million yuan of Huabao Tianyi's on-market share as collateral, the size of the funds or securities that can be incorporated can reach up to 3.8 million yuan. The yield during the mortgage period is much higher than that of cash collateral, and the security is much better than that of stock collateral or equity ETF collateral.
In terms of income distribution, unlike some other similar products (centralized income distribution at the end of each year), Huabao Tianyi distributes fund income daily, and the net value of income distribution is always maintained at the face value of 100 yuan per share:
The distribution of on-site share income adopts the principle of "daily distribution, profit with principal clearance". According to the daily return of the fund, based on the realized income of each percentage of the fund, the daily income of the day is calculated and distributed for the investor, and credited to the investor's income account.
OTC shares are distributed daily and paid monthly. According to the daily fund income, based on the realized income per 10,000 shares of the fund, the daily income of the day is calculated and distributed for investors, and the income from daily distribution participates in the income distribution of the next day, and is paid in a centralized manner every month.
After listening to the above introduction, are you already eager to try? Interested investors can invest as early as possible, let the "good guys" help you take care of your funds, and don't miss out on the spare money income every day!
Data sources: fund legal documents, Wind, Shanghai Stock Exchange, etc., the average daily turnover and the highest single-day turnover data during the year are as of 2024.3.31, the volatility data statistical range is from 2023.1.1 to 2023.12.31, and the rest of the data is as of 2023.12.31.
Risk Warning: The risk level of Huabao Cash Gain Trading Money Market Fund determined by the fund manager is R1 - low risk, and the risk tolerance is C1 (conservative) and above investors. Please refer to the sales agency for suitability matching opinions. The Fund invests in the securities market, the net value of the fund will fluctuate due to fluctuations in the securities market and other factors, investors need to fully understand the product characteristics of the Fund before investing in the Fund, and bear all kinds of risks arising from the investment of the Fund, including: systemic risks due to the impact of overall political, economic, social and other environmental factors on the price of securities, non-systematic risks unique to individual securities, and fund management risks arising from the implementation of fund management by fund managers. In addition, the Fund is listed and traded on the Shanghai Stock Exchange, and for investors who choose to buy and sell, factors such as transaction costs and secondary market liquidity will affect investors' investment returns to a certain extent. As the daily income of money market funds is limited, transaction fees will reduce investors' investment returns; In addition, the price in the secondary market is affected by supply and demand, and may be higher or lower than the net value of the fund's shares, forming a premium transaction or a discount transaction. When trading at a premium, the investor who buys the shares buys the Fund at a price higher than par and the investment income decreases, while the investor who sells the shares sells the Fund at a price higher than the par value and the investment income increases; When trading at a discount, an investor who buys shares buys the Fund at a price lower than par value and the investment income increases, while an investor who sells shares sells the Fund at a price lower than par and the investment income decreases. Since the Shanghai Stock Exchange may control the total amount of redemption applications of the Fund on the same day according to the requirements of the fund manager, investors may face the risk of not being able to redeem the Fund in a timely manner. Before making an investment decision, investors should carefully read the Fund's Legal Documents such as the Fund Contract, Prospectus and Key Facts Statement, and judge whether the Fund is suitable for the investor's risk tolerance based on their own investment objectives, investment period, investment experience, asset status, etc. Past performance of the Fund is not indicative of its future performance. Money market fund investment is not equivalent to bank deposits, does not guarantee a certain profit, nor does it guarantee a minimum return. Investment in funds is risky and should be cautious.