When users choose to deposit cash in Yu 'ebao, Yu 'ebao itself is not a wealth management product, because there are monetary funds behind Yu 'ebao. What we usually call Yu 'ebao is just a combination of money funds. Users can choose the corresponding monetary fund from the specific options of Yu 'ebao, which is also an important reason why Yu 'ebao's income can be so stable.
1. The fund of Yu 'ebao is a monetary fund.
When we click on the specific investment page of Yu 'ebao, Yu 'ebao will have the option to choose a monetary fund. If users want to change money fund products, they can operate directly in this option. The annualized rate of return of Yu 'ebao is generally around 1.5%. When Yu 'ebao was first established, because Alipay itself gave Yu 'ebao a certain subsidy, the annualized rate of return of Yu 'ebao at that time could reach more than 3%.
Second, the monetary fund itself is very stable.
The reason why Yu 'ebao will not lose money is mainly because the money fund itself is very stable and basically will not lose money. When there is a currency loss problem, it basically means that there is a major problem in global investment. This situation is very rare in history. Unless there is a war and a very serious financial turmoil, there will be no big fluctuations in monetary funds.
Third, Yu 'ebao itself will also allocate money funds in combination.
Although the return on investment of the money fund is almost the same, for the balance treasure, the balance treasure will be adjusted according to its own needs to ensure the maximum income of the balance treasure. For ordinary users, we can even regard Yu 'ebao as a cash flow method that can be used at any time. The security of Yu 'ebao is very high, so we basically don't need to worry about the loss of Yu 'ebao.