When many investors invest in money funds, they find that the income of the money funds they buy is getting lower and lower, and they will be more confused. Why is the money fund's income getting lower and lower? What is the reason? We have prepared relevant contents for your reference.

In 2013/2014/2015, the expected 7-day annualized rate of money funds was relatively high, but with the change of time, up to now, the expected 7-day annualized rate of most money funds has declined, which means that the income is not as high as before.

The main reason is that in order to strengthen the risk management of the liquidity of the money fund, the regulatory authorities require fund companies to expand the scale of the money fund and need more risk reserves, so the scale pressure of the money fund companies will increase, which will affect the income of the money fund and lead to a decline in income.

Secondly, there is a more important reason for the downward trend of money market interest rates. The rise and fall of the money fund is mainly related to the investment target of the money fund. The Monetary Fund mainly invests in cash, bank deposits with a maturity of 65,438+0 years (including 65,438+0 years), bond repurchase, central bank bills, interbank deposit certificates, bonds with a remaining maturity of 397 days (including 397 days), and debt financing instruments of non-financial enterprises.

The above investment direction of the Monetary Fund is closely related to the environmental protection fund. If the money is tight and the money market interest rate rises, then the income of the money fund will increase. Relatively speaking, if the money is not tight and the money market interest rate drops, then the income of the money fund will drop.

However, on the whole, although the income of the Monetary Fund has declined, the degree of decline is relatively slow, and the Monetary Fund rarely loses money. At present, money fund is still the least risky fund type, and its income is relatively stable, which is more suitable for conservative investors.

Long-term holding is more likely to make money. When choosing a money fund, we can look at the past income of the money fund, give priority to the money fund with better income, and then choose a good fund manager, because the fund is managed by the fund manager. When choosing working years, fund managers with more than three years' experience can be given priority.