1. Why does the money fund suddenly plummet every 10,000 expected annualized returns?
The soaring expected annualized income per 10,000 shares of the Monetary Fund is closely related to the centralized payment of the expected annualized expected income of bonds and deposits.
But in fact, "Xiao He defeated Xiao He", the expected annualized income per 10,000 shares of the Monetary Fund suddenly became very low, but it was also directly related to bonds. Let's look at the asset portfolio of E Fund's currency A on a certain day, in which bonds account for 29. 1%. I know that I have a time deposit in the bank, and I have to pay some penalty interest for withdrawing the time deposit in advance. Before the money fund and the bank directly agree to deposit, there is no need to pay penalty interest for early withdrawal. Therefore, in the case of large-scale redemption, the money fund can solve the liquidity problem by withdrawing part of the agreed deposits in advance, which will not significantly reduce the expected annualized expected return of the money fund itself.
However, bond investment is very complicated, because the principal of a bond is paid only when it is due, and the interest of a bond is generally paid when it is due or on the day when the interest is paid. It is difficult for a bond to get its principal back directly, so it can only be traded in the bond market. When there is a large-scale redemption of money funds, in order to fulfill the redemption application of the rich, fund managers have to sell their bonds at a lower price or even at a loss in the bond market. In this way, its expected annualized expected income is almost gone, and sometimes it even offsets the expected annualized expected income brought by the agreement deposit.
In this case, the expected annualized income of the Monetary Fund per 10,000 shares per day will suddenly drop.
2. Why does the expected annualized income per 10,000 copies of the Monetary Fund suddenly soar?
The main investment targets of the money fund include bank deposits, bonds and so on. The expected annualized expected rate of return of bonds is higher than that of bank deposits, and the longer the maturity of bonds, the higher the expected annualized expected rate of return. So most fund managers will invest in some very safe bonds to get a higher return on investment.
Bond interest will be paid on the agreed date. When the money fund invests in many securities such as bonds, it will also stagger the maturity dates to ensure that the maturity dates are different. When there are many bonds due on a certain day, and the expected annualized expected return of the money fund is distributed on a daily basis, then the expected annualized expected return per 10,000 shares on a certain day will be particularly high. Seven-day annualization is also the expected annualized income of an average of 10 thousand in seven days, so it will also rise instantly.
In addition, some smaller funds, due to limited funds, sometimes can't achieve stable daily investment and maturity like Tian Hong's cash increase. This may also lead to a sharp fluctuation or even a sharp rise one day.
This is why on March 3 1 day, the expected annualized income per 10,000 shares of E Fund Currency A directly reached 1 1.2762. Of course, this situation is hard to meet and unpredictable, so it is difficult to catch up. The fund has strict risk control, so in this case, there is no need to doubt the calculation error, just put the expected annualized expected return in your pocket ~
I want to add here that the bigger the fund, the smaller the fluctuation of its expected annualized expected return, so if you want to hold a money fund for a long time, you may wish to refer to the expected annualized expected return of this fund in the past few months or quarters.