For users, Yu'e Bao's profit actually means that the user purchased the "Zenglibao" currency fund provided by Tianhong Fund.

It is not Yu'e Bao that provides real income to users, but the monetary fund behind Alipay.

In fact, currency funds are a type of open-end fund. According to the types of financial products invested by open-end funds, open-end funds are divided into four types: stock funds, hybrid funds, bond funds, and currency funds.

The first two categories belong to the capital market and one is the money market.

Monetary funds mainly invest in extremely safe short-term financial products such as bonds, central bank bills, and repurchases. They are also known as "quasi-savings products." Their main characteristics are "worry-free principal, convenient demand, regular income, and

Diary earnings, monthly dividends”.

Monetary funds only invest in the money market, such as short-term treasury bonds, repurchases, central bank bills, bank deposits, etc., and there is basically no risk.

Its liquidity is second only to bank demand deposits. The income is calculated every day. Generally, the income is transferred into fund shares in one month. The income is slightly higher than that of a one-year time deposit, and the interest is tax-free.

The principal of currency funds is relatively safe, with an expected annual return of 3.9%.

Suitable for liquid investment instruments and an alternative to savings.

Under normal circumstances, the probability of investors making a profit is 99.84%; the expected rate of return is between 3.8-5%, which is higher than the 3.5% interest on one-year time deposits, and there is no interest tax; it can be redeemed at any time, generally after application

Funds will arrive the next day after redemption, which is very suitable for investors who pursue low risk, high liquidity, and stable income.

The emergence of Alipay wallet itself is of great historical significance. It breaks the fee collection model for transfers and remittances between different banks or across provinces. In the mobile Alipay wallet, users have realized that transfers and remittances are free of fees.

The corresponding Yu'e Bao financial management can be transferred directly to the Alipay wallet, while Tencent Financial Management (Tencent's Yu'e Bao) can be transferred in WeChat. Users only need to bind their bank card to WeChat.

It is extremely convenient, and with the emergence of Baidu Wallet, it does not rely on a separate Baidu Wallet to compete with the multi-functional Alipay Wallet and WeChat, but calls the payment function according to the user's search needs and usage scenarios.

None of the three mobile platforms are pure financial management or pure products. They all provide additional payment functions on top of basic functions.

The emergence of Baidu APP has allowed the three BAT giants to continue to engage in hand-to-hand combat on the mobile battlefield.

It is very likely that the future of finance will no longer return to the past finance. It will be labeled as the Internet from now on. As long as there is finance, it will be Internet finance.