Money fund is a fund company that concentrates idle funds in everyone's hands and invests them in some short-term monetary instruments, such as government bonds, central bank bills, bank time deposit certificates, short-term government bonds, agreement deposits and so on. However, the funds of individual investors are generally small and cannot participate in this market. At present, the annual fluctuation is about 3%, which is about 0.82 yuan per 10,000 yuan per day (it changes every day and fluctuates greatly in the long run, but it is also higher than the one-year time deposit rate in the same period).

Most money funds invest in bank deposits and bonds, and our income also comes from bank deposit interest and bond interest. The different income of different money funds also comes from the different interest rates brought by the different allocation ratio of funds to bank deposits and bonds.

Monetary fund deposits in banks are generally deposited in the form of agreement deposits. Due to the large amount of money and strong bargaining power, the interest of money funds is higher than that of personal deposits. At the same time, it is also subject to the bank's demand for funds. Interest will increase when it is needed, and will decrease when it is not needed-the bargaining power of the monetary fund+bank demand.

Bonds are generally government bonds, financial bonds and high-grade credit bonds, and their interest is also subject to the market demand for funds. The market needs a lot of funds, so the bond interest will be high and our income will be higher-the market capital demand.

At the same time, the size of the money fund itself and the level of fund managers are also one of the influencing factors.