The main reasons are as follows: at present, the average investment period of money market funds cannot exceed 120 days, and the longest investment period cannot exceed one year, so one-year bonds or central bank bills are actually the upper limit of the income of money market funds. Several fund companies established in the early days hold a large number of one-year central bank bills with a yield of 3.2-3.5%. Recently, banks have launched a large number of RMB wealth management products, most of which are also one-year. These wealth management products are mainly invested in one-year central bank bills, and the increase in demand leads to the price increase, so these established money market funds have obtained certain capital gains (spread income). Therefore, if we look closely, the amount of income announced on Tuesday divided by three (the data of this day includes the income of Saturday, Sunday and Monday) will often be lower than the usual data, mainly because there is no transaction on Saturday and Sunday, only interest income and no spread income.
If the central bank raises interest rates again and the price of central bank bills falls, then funds with long duration (in layman's terms, long average duration) will lose money, or even lose money. Of course, in general, due to the short duration, the risk is indeed the lowest in the fund and can be ignored.
However, it must be remembered that it is easy to lose money, but the possibility of a big loss is extremely small, because the income announced by money market funds is per 10,000 yuan, which is four decimal places after the net value of unit funds, which is 10,000 times larger than that of non-money market funds. For example, even a loss of 10 yuan per 10,000 yuan is terrible. In fact, it is only 1.0000 yuan, which is converted into 0.999. What if?
In other words, the fund company is blowing up a dollar every day, but in fact, its net value has only increased from 1 yuan to 1.0438+0 yuan. Therefore, money market funds are mainly tools for liquidity management, not varieties for long-term investment.
Personally, I think the fund is not 100% profitable. I hope my answer can help you. You can ask me if you don't understand anything.