Seven-day annualized rate of return: based on the seven-day fund income, estimate the one-year fund income.

The direct impact of the decline in annualized income on the 7 th: the income of users who buy Yu' ebao will be reduced accordingly.

The popular explanation of annualized income 1 and 7 days

If you buy Yu 'ebao Fund with 10000 yuan, you will earn 7 yuan in the first seven days, with an average daily income of 1 yuan. Assume that the 365-day income is 1 yuan, and the one-year income is 365, which translates into a yield of 365/ 10000 = 3.65%.

3.65% is the annualized income of seven days.

The seven-day annualized rate of return is only a reference, not a promised rate of return, because the seven-day annualized rate of return will change with time.

2. Reasons for the decline of Yu 'ebao's income: the scale of funds has decreased due to government supervision.

Yu 'ebao is essentially a monetary fund, and its income is mainly composed of large amount of agreed deposits from banks. At the same time, the income of bank deposits is linked to the scale of funds, and the larger the scale of funds, the greater the income.

Previously, because of the large scale of Yu 'ebao's funds, the agreed deposit interest rate was much higher than the bank deposit interest rate in the same period, so the previous Yu 'ebao had a high yield. However, the huge volume has also been regulated by the government, so the scale of funds has been greatly reduced and the income has also decreased.

The specific impact mainly includes the following points:

(1) Fund composition adjustment of Yu 'ebao

The former Yu 'ebao Fund was mainly composed of Tian Hong Fund, so Tian Hong had a great say in the agreement deposit. But the central bank requires the introduction of other fund companies. While reducing the risk, it also reduces the size of each fund, and the interest rate of agreed deposits obtained by each family has dropped sharply, which is reflected in the fund's rate of return.

(2) Competition between Tencent and JD.COM.

Alipay was the first company to get an Internet finance license at the beginning, so the funds in the market basically poured into Yu 'ebao. However, with the emergence of Tencent, JD.COM and Baidu, these enterprises have also obtained corresponding licenses and launched corresponding wealth management products. Yu 'ebao is attractive to users. For example, in the past, while the scale of funds declined, the competitiveness of agreed deposits was not as good as that of a monopoly.

(3) Adjustment of market interest rate

The domestic agreed deposit interest rate is based on the Shanghai Interbank Offered Rate. Since 20 19, the money market has been abundant, the lending rate has continued to fall, and the yield of the money fund has also declined. The reason for the abundant funds in the money market is that the previous purchase restriction policy of Yu 'ebao led to the return of funds to the traditional money and financial market.

(4) vicious circle

The lower the fund's rate of return, the more funds will flee. The more funds flee, the lower the corresponding agreement deposit interest rate and the lower the capital return rate. This is the dilemma that Yu 'ebao Fund is facing now.