For fund investors, especially money market fund investors, "amortized cost method" is a familiar term. Since the establishment of the first money fund product publicly offered by domestic fund industry in 2003, amortized cost method has been used for pricing. The so-called amortized cost method, simply put, is to allocate the due income to every day for interest return. For example, a money fund buys 1 year treasury bonds at a unit price of 100 yuan, and the money fund spreads this 2.5% evenly every day, that is, 2.5%/365 days, and then multiplies it by the purchase amount, then the daily investment income is fixed. Of course, the current amortization cost method uses the actual interest rate for amortization, so if you buy bonds at a discount or a premium, the calculation of daily income will be more complicated. The daily income is not a fixed value, but it can be roughly understood as "distributing the due income to every day". Therefore, we can see that the daily unit net value of the money fund is 1, unchanged. The change is the daily income of 10 thousand yuan and the seven-day annualization to reflect the fund income.

Different from the amortized cost method, the market value method not only considers the coupon rate of investment bonds, but also considers the valuation gains and losses caused by market value fluctuations. For example, a bond fund valued by the market value method also bought 1 year treasury bonds with an interest rate of 2.5%. When the fund is valued, the coupon income of 2.5% is included in the daily income, that is, 2.5%/365 days, and the difference between the bond purchase price and the fair price of the day is added or subtracted according to the third-party valuation. That is to say, assuming that the positions of the debt base and the currency are exactly the same, the daily income of the fund valued by the market value method and the monetary fund valued by the amortized cost method is different due to the different valuation methods. Bond funds valued by the market value method may have a net withdrawal in a certain period of time, but they can also have an accelerated net increase during the bond bull market.

For fund investors, the two valuation methods have no substantial advantages or disadvantages. Fund holders should pay more attention to their own risk preferences and the length of investment period. If the risk appetite of fund investors is low and the liquidity of funds is high, for example, the investment period is set to one week, in this case, money funds are obviously a more suitable investment choice. Although the stability of the money fund is naturally superior to other types of funds, the income of the money fund is closely related to the income of the money market because of the strict control of the rating of the money fund positions and the remaining term. Looking back at the market situation in the second half of 20 16, the overnight repo rate of the exchange is as high as 45%. Under the background of tight funds, money funds occupy half of the fund industry. However, since last year, first of all, the new liquidity regulations have been implemented, and the investment of money funds has been restricted everywhere. By the end of this year, Yang Ma and Cai Dad quarreled, and the funds were generally loose. The income of the money fund will inevitably follow the income trend of the basic allocation assets.