Yu 'ebao invests and operates through the monetary fund of Tian Hong Fund. Generally speaking, the operation mode of the money fund is actually to form a huge pool of funds by absorbing money from the public and investing it in the interbank market that ordinary people can't invest. In other words, help ordinary people make money from banks.

Investment direction of Yu 'ebao Monetary Fund:

The investment direction of Yu 'ebao is mainly short-term monetary instruments (generally within one year), and the subject matter is short-term securities such as government bonds, central bank bills, commercial bills, bank time deposit certificates, government short-term bonds, corporate bonds (with high credit rating) and interbank deposits.

Among them, bank deposits and settlement reserves account for 92.2 1%, and bonds account for 6.7%, which is close to the whole balance treasure scale. Bank deposits and bonds are low-risk investment products.

The investment direction of money market funds is mostly agreement deposits. Because of the large amount of funds and tight market funds, we have a high bargaining power with banks, and we can get much higher interest rates than deposits in banks. So its income will be high. In addition, it will also invest in high-credit AAA bonds within 397 years, bond repurchases, and central bank bills with a maturity of 1 year.