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Why does the money fund invest in cash? Look at the investment direction of the money fund. One of them is "cash". I don't know why I should invest in "cash".
Investing in "cash" is one of the financial instruments that money funds can invest in as stipulated in the Interim Provisions on the Management of Money Market Funds. This is actually a question of liquidity. We all know that cash is the most liquid.

Cash investment is the most important investment form to absorb direct investment. With cash, enterprises can get the materials they need, pay all kinds of expenses and have the greatest flexibility. Therefore, enterprises should strive for investors and invest in cash as much as possible. The amount of cash needed to absorb investment depends on the amount of funds invested in physical objects and industrial property rights to meet the expenses and daily turnover needs of the factory.