Turn: The smooth flow of channels provides the possibility for funds to flow from money market funds to the stock market. The decline in money market yields and the recovery of the stock market provide dual impetus for this trend.

Now that the money market fund reservoir gates are likely to be opened, which rivers will be filled with incoming water?

The stock market is undoubtedly a beneficiary.

Part of the funds flow from money market funds to the stock market, which will increase the supply of funds in the stock market to a certain extent.

If the "wealth effect" of the stock market can be further strengthened this year, this flow rate may accelerate.

However, some researchers said that the amount of this part of funds cannot be overestimated, because the vast majority of money market funds with assets of nearly 200 billion are still risk-averse funds and will not easily flow into the stock market just because the stock market has improved.

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Equity-oriented funds may be another beneficiary.

However, it is worth noting that some of the funds may flow directly into the stock market, and although the other part will be converted into funds in the direction of stocks, fund companies may not benefit equally.

It can be seen from the disclosed data that as of the end of last year, although the overall size of equity-oriented funds had increased, the average size of individual funds continued to decline, indicating that most funds were still under greater redemption pressure.

Since the performance of funds in recent years has disappointed investors, since last year, every wave of market results has led to a wave of redemptions from stock funds, especially large stock funds. Whether the current market situation will evolve into this ending again requires people to continue to observe.