The main investment targets of the money fund are agreement deposits, expected annualized interest rate bonds, short-term financing, central bank bills and corporate bonds. Compared with bond funds, in order to ensure liquidity requirements, the duration of bond varieties is relatively short. From the perspective of investment varieties, it is easy to see the relevant elements of the money fund-benchmark expected annualized interest rate, market liquidity and so on.

1. Expected annualized interest rate factor: money market funds invest in money market instruments, and the adjustment of expected annualized interest rate directly affects money market instruments, which in turn affects the expected annualized expected return of money market funds. Generally speaking, the expected annualized expected return of money market funds changes in the same direction as the expected annualized interest rate.

2. Rate factor: In mature capital markets, money market funds are only tools for investors to manage positions and liquidity, and fund fees (management fees; Sales service fee; Taxes, etc. ) is the decisive factor leading to the difference of net expected annualized expected return of various money market funds.

3. Scale factor: The larger the money market fund, the higher the expected annualized expected return. According to the development experience of American money market funds, there is an optimal scale for a single money market fund, which has scale effect, that is, the larger the scale, the higher the expected annualized expected return; Beyond this scale, there will be no scale effect.

4. Liquidity of market funds

Market capital When the money market is short of funds and the demand is large, the expected annualized expected return of the money fund will rise. Generally, the end of half a year, the end of the year and the Spring Festival are all periods of tight money in the money market. At this time, if you enter the money fund market, you will get higher expected annualized expected returns.

5. The convergence trend of expected annualized expected rate of return.

With the improvement of money market, the expansion of the overall scale of money market funds and the standardization of management laws and regulations, the expected annualized expected returns of money market funds in China will face a convergence trend and have a strong sustainability. Generally speaking, the historical expected annualized expected return should be around 2.6%.

Step 6 combine

The main investment targets of bond supply and demand money funds include short-term bonds. When the demand for a bond increases and the supply decreases, the price of the bond will rise, so the expected annualized expected rate of return of the money fund investing in this bond will also increase.