At present, the amortized cost method uses the actual interest rate to amortize, so the calculation of daily income will be more complicated if bonds are purchased at a discount or a premium. The daily income is not a fixed value, but it can be roughly understood as "distributing the due income to every day". So we see that the daily unit net value of the money fund is 1, and there is no change. The change is the daily income of 10 thousand yuan and the seven-day annualization to reflect the fund income.
1, amortized cost method
(1) Definition:
The amortized cost method refers to a valuation method that does not use the market value of the fund's investment target when calculating the fund's net value, but lists the investment target as the purchase cost, amortizes it evenly in the remaining period according to the premium or discount when coupon rate considers the purchase, and accrues the income on a daily basis.
(2) For example:
In the past, the financial products that everyone bought in the bank were basically amortized cost method, and it was the use of amortized cost method that gave everyone the illusion of absolute guarantee of financial income. Suppose you buy a bond of 100, coupon rate 4%, and hold it for one year. The principal and interest are *** 104. According to the calculation method of amortization cost method, how is everyone's daily income calculated? Divide 4% by 365 and multiply it by 100 yuan to calculate the daily income. According to this algorithm, everyone can get a fixed income every day.
However, the reality is not so beautiful. The price of bonds actually fluctuates with the change of interest rate, which may rise or fall. Simply using the amortized cost method will make you ignore the potential risks, and in fact everyone does. Therefore, according to the requirements of the new asset management regulations, it is necessary for banks to use the market value method to evaluate wealth management under the requirement of breaking the rigid payment.
2. Market value method
Compared with amortized cost method, market value method not only considers coupon rate, but also considers fair price fluctuation caused by market value fluctuation. For bonds with the same price of 100 yuan and the coupon rate of 4%, the amortized cost method is to divide 4% by 365, multiply it by 100 yuan, and add the fluctuation of the market value of the day. In this way, your daily income is not fixed, the market value may be high or low, and the volatility has increased. In extreme cases, you may have to bear the risk of negative returns! I believe everyone has realized that many of the net-worth wealth management products launched by banks are really volatile, and there will be no words like expected income.
Generally speaking, the use of market value method is more conducive to everyone's understanding of the potential fluctuations of products and the risks of investment.