Factors affecting the money market fund, what are the reasons for the decline of the money market fu

Factors influencing currency** returns:

1. Bank deposit interest rate;

2. The demand for funds in the treasury bond repurchase market;

3. The supply and demand of bonds;

The return of the currency ** is generally positive, and there will be no loss if you earn more and earn less. No one can say how much it can go up or down. **Yields may be higher when the issuance is intensive. In particular, the issuance of ** shares.

The reason for the sudden high yield of money in a short period of time: This is because the money market** can invest in bonds and repurchases of less than a year, and the policy stipulates that the return must be recognized on the same day and cannot be amortized. So in this regard, yields can fluctuate a lot.

And this is one of the reasons why the money market** can choose the most favorable valuation method at different times. However, in the long run, the money market** is about the same as the benchmark interest rate, and will not have a yield above 10% for a long time.

For example: **Treasury bond repurchase, financing funds, it happens that the market is subscribing to **shares, and the funds are very tight, so the repurchase yield will be relatively high during that time.

As long as the bond is ** a day, then according to the algorithm of currency **, the annualized rate of return will also be very high.

The unit net value of currency ** is always 1 yuan, and its income is distributed every day (there are fluctuations, different every day), and the income distribution is announced in the way of "10,000 returns" and "7-day annualized rate of return".

For example: "10,000 shares of income 0 5878" means that every 10,000 shares of currency** share can get today is 0 5878 yuan. The "7-day annualized rate of return" is the average return of the last 7 days converted into a one-year yield.

"10,000 returns" is the actual income that investors get every day. The "7-day annualized rate of return" is a parameter that examines the long-term profitability of a currency. Generally speaking, currencies with a higher "7-day annualized yield"** have a relatively higher ability to benefit.

The risk of currency** is extremely low and almost negligible, with a total annual return of about 2 to 3, which is about the same as the after-tax interest of a one-year term savings, but it is much more liquid than a regular savings and can almost replace current savings, but the income is 3 times that of current savings.

There is no commission for the purchase and redemption of currency**. The only way to pay dividends is "dividend transfer", and the accumulated income is carried forward to the currency ** share once a month. When you redeem it, it's 1 yuan for 1 share, and if your cumulative share is 1.05 million shares, it's 1.05 million yuan when you redeem it.

1. First of all, the central bank's monetary policy continues to be loose. The People's Bank of China (PBOC) cut the reserve requirement ratio (RRR) and injected a large amount of money into the market to ensure ample market liquidity. The effect of the RRR cut is not only to release liquidity, but also to reduce interest rates in the money market.

2. It is stipulated that institutions cannot advance money for the currency ** redeemed by T+0. This provision will undoubtedly reduce the channels for monetary advances, and for this reason, currencies may need to increase the proportion of cash holdings if they want to ensure high liquidity. But since cash does not generate income, the more cash is left, the lower the overall rate of return on the currency** will be.

3. The larger the scale, the more difficult it is to manage, and at the same time, there may be more idle funds left, which may cause the return of the currency to decline. Currencies are not only the largest of all, they are also the fastest-growing.

The main reason for the yield of money is related to the current easing policy of the central bank. This year, the central bank has launched several easing policies such as lowering the deposit reserve ratio and the benchmark interest rate on deposits and loans, because the main investment target of the currency is the short-term currency market instrument in the interbank market, so it is normal for the income to return to the overall market conditions. In short, the reason why the yield on products such as currencies continues to fall is because there is no shortage of money in the market right now.

Currency ** Falling? What do you mean.

The main investment targets are agreement deposits, expected annualized interest rate bonds, short-term financing, central bank bills, and corporate bonds. Compared with bonds**, currencies** are required to ensure liquidity, and the duration of bonds is relatively short. From the perspective of investment varieties, it is easy to see the related elements of currency ** - benchmark expected annualized interest rate, market liquidity and so on.

1. Expected annualized interest rate factors: The investment object of money market ** is money market instruments, and the adjustment of the expected annualized interest rate has a direct impact on money market instruments, which in turn affects the expected annualized expected rate of return of money.

2. Rate factor: In a mature capital market, the money market is just a tool for investors to manage their positions and liquidity. sales service fees; taxes, etc.) are the decisive factors that lead to differences in the annualized expected returns of the net net expectations of each money market.

3. Scale factor: the larger the scale of the money market, the higher the expected annualized expected return, according to the experience of the development of the U.S. money market, there is an optimal scale of a single money market, and there is a scale effect within the scale, that is, the larger the scale, the higher the expected annualized expected return; Beyond that scale, there is no scale effect.

4. Market liquidity.

Market FundsWhen there is a shortage of money market funds and the demand is large, the expected annualized expected return of the currency** will rise. Generally, the end of the half year, the end of the year, the Spring Festival, etc. are the period of tight funds in the currency market, and entering the currency market at this time will obtain higher expected annualized returns.

5. The expected annualized expected rate of return converges.

With the improvement of the money market, the expansion of the overall scale of the money market and the standardization of management regulations, the expected annualized expected rate of return of China's money market will face a trend of convergence, and it has a strong sustainability.

6. Bonds. When the demand for a bond increases and the supply decreases, the bond will rise, so that the expected annualized expected return of the currency** invested in this type of bond will also increase.

1. Bank interest rate. The bank interest rate directly affects the income of the currency, for example, the current one-year deposit interest rate is, which is the ** of the capital, for example, the interest rate income of the currency ** is also, then the income of the currency ** is.

2. Treasury bonds. Treasury bond yields can be said to be the safest financial products in a country, and the interest rate is correspondingly higher. Of course, the income from buying treasury bonds also directly affects the income of the silver socks of the currency.

3. Reverse repurchase of treasury bonds. The purchase of currency** also highlights its safe and stable value. If the return of the reverse repo of treasury bonds decreases, then the return of the currency ** will also decrease correspondingly, and if the yield of the reverse repo of treasury bonds increases, then the corresponding return will also increase.

Merit. In addition to the characteristics of stable income, strong liquidity, low purchase limit and high capital security, the money market has some other advantages, such as the ability to issue checks and pay consumer bills with the ** account; It is often used as a place to temporarily deposit cash before making a new investment, which can earn more than a demand deposit and can be withdrawn for investment at any time. Some investors subscribe to the money market in large quantities and then gradually redeem them for investments**, bonds, or other types of money**.

Many investors also hold cash in the form of money markets** for contingency needs. Some money markets** even allow investors to withdraw their money directly from ATMs.

Peculiarity. 1. The main difference between the money market and other investors is that the net asset value of the unit is fixed, usually 1 yuan per unit. After investing in the **, the investor can use the income to reinvest, and the investment income will continue to accumulate and increase the share of the investor in the **.

2. The standard for measuring the performance of the money market is the rate of return, which is different from other profits based on the appreciation of net asset value.

3. Good liquidity and high capital security. These characteristics are mainly due to the fact that the money market is a low-risk, highly liquid market. At the same time, investors can transfer ** units at any time without being restricted by the maturity date.

4. Low risk. Money market instruments typically have a short maturity date, with an average maturity of 4-6 months for a money market** portfolio, so it is less risky, and its** are usually only affected by market interest rates.

5. Low investment cost. Money markets typically do not charge redemption fees and have lower management fees, with an annual management fee of approximately 1% of net asset value, which is lower than the traditional annual management fee.

6. The money market is open-ended. The money market** is generally regarded as a risk-free or low-risk investment vehicle suitable for short-term capital investments that earn interest in case of emergency, especially in times of high interest rates, high inflation,** declining liquidity, and reduced credibility to protect the principal from loss.

1. What is the money market**.

It refers to an investment that invests in the currency market in the short term (within one year, the average period is limited to 120 days). The ** asset is mainly invested in short-term currency instruments such as treasury bills, commercial papers, bank certificates of deposit, bank acceptance bills, short-term bonds, corporate bonds and other short-term valuable**. There is only one way to pay dividends in currencies - dividends are reinvested.

In the money market, each unit is always kept at 1 yuan, and the income after exceeding 1 yuan will be automatically converted into **shares, and how many **shares you own is how many assets you have. While other open-ended ** shares are fixed and the net value of the unit is accumulated, investors can only rely on the annual dividend to achieve income.

Currency is essentially an open type, and its main investment objects include treasury bonds, central bank bills, commercial papers, bank certificates of deposit, short-term bonds, corporate bonds, interbank deposits, etc.

Compared with other products, the currency type has the following typical characteristics:

Good safety and low risk.

From the perspective of investment security, the security of currency** is significantly better than that of other **products. Currency** rarely loses money, but yields are sometimes high and sometimes low.

Good liquidity. Most products take a long time for investors to redeem when they need to be redeemed, generally at least two trading days. Currency**, you can withdraw it at any time, which greatly improves the liquidity of funds.

Low investment costs.

Currently, most currencies** do not charge redemption fees, only a small management fee and service fee. This part of the fee will be deducted from the **net value on a daily basis.

How to choose a currency**:

In order to ensure maximum investment returns, investors should adhere to the following basic principles when choosing a currency**:

Profit maximization is the original positive and negative rule.

Relatively speaking, the return of the currency type is relatively low, and investors can choose the highest return ** as an alternative product through **sale** or **trading system.

Principle of operational stability.

Choose those varieties that have been in operation for a long time and have relatively stable income.

The principle of moderate size.

Currency types are all operated by dedicated managers. When a company is too large or too small, it is difficult for managers to get the most out of their operations.

The principle of trading flexibility.

Most currencies** are very flexible and can be purchased and redeemed at any time, but there are still some currencies** that are fixed in nature, such as 30 or 90 days.

The characteristics of the currency** are:

1. Principal security: Most of the money market investment varieties determine that the risk is the lowest in all kinds of money, and the currency contract generally does not guarantee the safety of the principal, but in fact, due to the nature of the bank, the currency rarely loses the principal in reality.

2. Strong capital flow: Liquidity comparable to demand deposits. **Convenient to buy and sell, short time for funds to arrive, high liquidity, generally** redemption of one or two days of funds can be received. At present, there is a basic gold company to open the instant redemption business of currency**, which can be received on the same day.

3 Higher yields: Most money markets** generally have the same level of yield as Treasury investments. In addition to investing in exchange repurchase and other investment tools that can be invested by general institutions, the money market can also enter the interbank bond and repurchase market and the bank bill market for investment, and its annual net yield can generally be compared with the one-year fixed deposit interest rate, which is higher than the income level of bank savings in the same period.

Not only that, but the money market** can also avoid hidden losses. When inflation occurs, real interest rates can be low or even negative, and the money market** can keep abreast of interest rate changes and inflation trends to obtain stable and higher yields.

4. Low investment cost: The trading fee is generally free of handling fees, and the subscription fee, subscription fee, and redemption fee are all 0, and the capital in and out is very convenient, which not only reduces the investment cost, but also ensures liquidity.

5 Dividends are tax-free: the face value of most money markets will always remain 1 yuan, the income is calculated every day, there is interest income every day, investors enjoy compound interest, and bank deposits are only simple interest. The monthly dividends are carried forward to ** shares, and the dividends are exempt from income tax.