This type of income fund is very consistent. That's why its yield is so low. Also, there's no risk involved. It's almost exactly like a GIC.. with just a little bit higher yield.
-jeffrey815(Smartiecat);
2002-1-22{194}(#343768@0)
Advantage, you can take it out any time. Unlike fixed GIC which is normally fixed during the period and if you take it out, you loss all the interest. Disadvantage, your deposit is not gurantee.
Advantage我是和清楚，请解释一下Disadvantage。为什么"deposit is not gurantee"？不是说no risk involved？
-heian(㊣黑暗天使);
2002-1-22(#343776@0)
I think because the interest rate is based on the exchange rate. In case of a hard devaluation (like in Argentina), you may lost some or most of your money.
-hellangel(地狱天使);
2002-1-22(#343814@0)
Your GIC is called Gurantee Income Certificate, your base deposit is gurantee. But for mutual fund, your deposit is not gurantee. Although the risk is so low, but there is still a chanceyou will loss money
-jeffrey815(Smartiecat);
2002-1-25{230}(#347343@0)
But the chance you are losing money is like only 1%. but still, it's not gurantee. Also, I'm pretty sure GIC is insured while mutual funds are not. Which means if the bank go bankrupt, you get your GIC back but not mutual funds.
It's super low risk.. so people alway refer it to no risk.
-jeffrey815(Smartiecat);
2002-1-25(#347351@0)
money market fund is a kind of mutual fund that
-catcan51(小野猫);
2002-2-16{439}(#371229@0)
money market fund is a kind of mutual fund that invest in some short term government or institute issued bonds. because of it's low risk and high liquidity, it can also be consider as a saving account with higher interest rate.
As a practise of mutual funds sale and also in order to conform to the security law, the company will always disclaim that the value of your investment is not guaranteed. so you don't need to worry about it.