In the depressed market environment, investors' expectations of fund performance are greatly reduced, and the holding cost of funds and the procedures for replacing funds have become another focus of market attention. In order to attract more investors, the marketing strategies of fund companies in the market downturn have also turned to the optimization of fund rates. One of the most typical cases is the "Plan C" launched by Guangfa and the further reduction of the custody rate of the Monetary Fund.
The money fund entered the price war, and the custody fee once again broke the bottom line.
In the case of uncertain market structure, monetary products with stable returns are still the first choice for ordinary investors, and fund companies are also fierce in grabbing market share of the money fund. The prospectus of Hejubao Money Market Fund to be issued by Huitianfu this week shows that the fund custody fee rate is only 0.04%, and its fund custody bank is Shanghai Pudong Development Bank, which is the lowest custody fee product at present. Prior to this, the collection range of the custody rate of the Monetary Fund was 0.05%-0. 10%. Among them, the rate level of money funds established in recent two years is obviously lower than that of products established earlier.
With the liberalization of custody policy, small and medium-sized custody institutions are likely to take advantage of price to occupy market space, thus forming a wave of declining rates. The formation of the online sales model of money funds has also made the fund companies' consideration of the channel advantages of custodian banks gradually fade, and whether they can provide high-quality and low-cost services has become a more important selection criterion.
The cost of money funds is uneven.
From the nature of products, the sensitivity of money funds to rates is the highest among all kinds of funds. The income of money fund is relatively stable and the expected rate of return is low, which determines that its cost has a great influence on the investment income. Therefore, the rate is also an important reference index when choosing the advantages and disadvantages of money funds. From the historical data, there is a big gap between the actual fees and costs paid by investors to the money fund.
In addition to the above custody fees, the costs and expenses that investors need to pay for holding money funds include management fees, sales service fees, interest expenses and other expenses, and the on-site money funds also include value-added service fees. Judging from the total expenses of the Monetary Fund in 20 13 years, the fund expenses account for 0.08%-3.03% of the fund's net assets, and 70% of the expenses of the Monetary Fund account for less than 1%. The reasons for the high fees of some money funds can be basically divided into two categories: first, the scale is too small, and the inherent rate accounts for a relatively heavy proportion; Second, the interest expense is relatively large, and the interest cost paid by the monetary fund for short-term loans is too high.
However, high-cost money funds have not brought more returns to investors. Judging from the situation in 20 13, the investment return and expenses of the monetary fund did not show obvious positive correlation characteristics.
Learn to choose products with high quality and low price while facilitating investment.
For investors, the convenience of investment is the standard for choosing money funds, which is also the reason why fund companies quickly seized the online sales platform in the early stage. Online platforms such as Alipay, WeChat and JD.COM have launched money funds. However, with the normalization of the monetary fund's rate of return, there is no longer a high rate of return to attract investors' attention, and the marketing strategy of fund companies has quietly changed. It is one of the new strategies to give investors preferential rates.
For fund companies, the reduction of fees is expected to bring about the expansion effect of scale, thus making up for the lack of profits to some extent. However, at present, investors are less sensitive to fund operating expenses, so this kind of price war competition is helpful to cultivate investors' understanding of investment costs, learn to carefully select good products with high quality and low price, and optimize market form.