In the fund market, there must be people who have encountered fund deviation, and those who have been in contact with it are of course familiar with it, but those who have not been in contact with it are still blank. What is the deviation degree of money fund and how to deal with it? These two knowledge points will introduce

what is the deviation degree of money fund in detail in the next article? In China, the fund deviation is a unique concept of money funds, and the expression method is D=|Nb-Na|/Na*1%. To understand it in detail, we must first analyze it from the valuation method of the net asset value of money market funds.

In China, all money market funds are priced by amortized cost method, and then the net asset value of funds is evaluated by "shadow pricing". The amortized cost method is to calculate the interest receivable by investing in coupon rate with bonds, and then amortize the discount at the time of purchase within the remaining period according to the effective interest rate method, and calculate the net asset value of the fund with amortized cost; Shadow pricing uses market interest rate and transaction price to evaluate the fund's net asset value. The deviation degree of money market fund is the deviation degree of fund net asset value in the above two pricing methods.

how to deal with monetary fund deviation? Because the market interest rate and transaction price fluctuate constantly, it is inevitable that the assets calculated by the two valuation methods of money market funds deviate. As long as the deviation is within the specified range, it can be ignored; Once it exceeds the scope, it should be adjusted as follows:

If D≤.5%, the net asset value of the fund is determined according to amortized cost, and the net asset value of the fund is N=Na

If D> .5%, the book value of the portfolio is adjusted according to the fair value index, the net asset value of the fund is N=Nb, and the adjustment difference is Nb-Na, which is calculated by the fair value index.