in her article, Ms. Zhiwei of Everbright Prudential explained that ordinary funds are often valued by the market value method, so the net value will rise and fall. However, at present, most cargo bases are still valued by amortized cost method. Under this valuation method, the net value of the money fund is always 1, and the profits you get after purchase will be converted into shares, and the increased shares will still be valued at 1.

Therefore, on the surface, it seems that the net value does not fluctuate, which will give ordinary investors the illusion of "capital preservation". However, in fact, the rise and fall of the money fund is expressed by the annualized rate of return of seven days and the income of ten thousand shares, which will change with the tightness of the market funds.