The wave of Yubao’s scale surpassing China Merchants Bank’s deposits has not yet receded, and the news that the size of the money fund has exceeded 5 trillion has become a new topic. Before the first half of 2017, the A-shares were sorrowful. Afterwards, the interest rates of all major banks increased in May. The money fund is no longer a “small role” in the capital market. It is rapidly emerging and growing into the era of “Internet finance”. The "sucking gold" big killer.

Money funds have become a hot topic, and they have come from a group of data released recently by Tianxiang. As of the end of June, the size of the money fund reached 5.11 trillion, compared with 4.32 trillion at the end of last year, a net increase of 783.2 billion yuan, an increase of 18.09%. The early net assets that supported the size of the huge money fund reached a balance of 1.43 trillion yuan. There are also several banks that have launched the balance balance, such as ICBC Credit Suisse, China Merchants, and Jianxin.

What is the charm of the money fund?

Monetary funds, like bank wealth management, are conservative financial investment channels. Unlike traditional high-risk thresholds for traditional investments such as trusts, stocks and futures, money funds have a safe capital, strong liquidity, high yields, low capital costs and dividends. Tax exemption and other characteristics.

Monetary funds have low risks. Because their funds are mainly invested in low-risk areas such as banks, treasury bonds, central bank bills, and interbank deposits, and with liquidity comparable to bank demand deposits, money funds have become a safe haven for funds. In addition to low risk, the monetary fund yield is generally higher than the bank deposit rate. After a series of innovations, the transaction cost is almost negligible, which makes more and more investors favor the money fund.

In summary, the charm of the money fund is mainly reflected in the three comparative advantages: 1) the docking of low risk and higher income; 2) the higher income combined with the liquidity of demand deposits; 3) the technological innovation With the rapid growth of mobile customers.

What contributed to the money fund breaking through 5 trillion?

To understand the reasons for the outbreak of the currency fund this year, the author wants to first look back at the functional innovation of the IMF in 2013. After years of development, domestic money funds have become more mature. How to meet the diversified investment needs of investors has become a bottleneck for the development of money funds. To this end, a series of functional innovations have emerged from time to time.

One core of Monetary Fund's functional innovation is customer demand. There are four main innovation directions: 1) According to the characteristics of funds, launch a pit trading currency fund that targets idle funds in the market, such as Tianfu Express Line; 2) According to investors Habits, some money market funds have increased the function of shopping repayment, such as the "fast overflow" function; 3) some money market funds to achieve the "T + 0" fast redemption function to meet the investor's requirements for the speed of arrival; 4) Some money market fund businesses have realized automatic balance induction.

A series of functional innovations of the Monetary Fund laid the foundation for its market expansion. However, the central bank raised the reverse repurchase operating rate several times at the beginning of the year, which was considered by the market to be the central bank’s disguised “rate hike”, causing major banks to deposit in May. The interest rate adjustment was greatly adjusted, and the “carrying” war between the IMF and the bank was further upgraded.

However, why did the money fund continue to maintain rapid growth after the bank raised the deposit interest rate? There are two reasons for this: First, compared with the monetary fund income, the adjusted bank deposit interest rate is still unattractive; secondly, the A-share market is sluggish in the first half of 2017, causing more safe-haven funds to flow into the money fund.

Source: Tiantian Fund Network

According to data from Tiantian Fund Network, the annualized rate of return of the top ten money funds within one month is basically above 4%, while the interest rate of bank demand deposits is basically around the benchmark interest rate of 0.35%, a more obvious year of floating. The interest rate of the entire deposit and withdrawal is basically kept below 2%, and the inflow of funds into the money fund is a natural choice for the market.

In addition, the poor performance of the A-share market in the first half of 2017 was also an important trigger for the outbreak of the currency fund. Wind information data shows that as of June 30, after removing the second-time stocks listed in the first half of the year, among the 3032 stocks in the Shanghai and Shenzhen stock markets, the median half-year increase was 12.63%, and the rising stocks were only 761, accounting for only 761. More than just 1/4. The straight flush investment book data shows that the proportion of loss-making shareholders in the first half of the year was as high as 64%. Some investors even joked that this year "smashed a fake A share."

Where should the money be placed in the second half of the year?

At present, fast-growing monetary funds are still robbing funds with banks and stock markets, but whether the rate of return in the second half of the year can continue to act as a "sucking gold" weapon, the first thing to look at is policy changes.

Earlier, the central bank made it clear in the second quarter of the regular meeting that it will continue to implement a sound and neutral monetary policy. While correctly guiding the reasonable growth of monetary credit and social financing, the liquidity is basically stable. Stable. However, the central bank resumed its 28-day reverse repurchase operation in June, and the fabrics in the second half of the year were alleviated.

In general, the tightness of the central bank's monetary policy in the first half of the year has led to high yields of the money fund. If the liquidity becomes more accommodative in the second half of the year, the income of the money fund will decline. If the monetary policy is stable, the monetary fund will still be profitable. Therefore, investors still have to look at the central bank's policies. However, whether it is security or return, bank deposits are very "chicken".

â–  Wen|Long Yuan, financial editor of Hong Kong Caihua.

This article is original, unauthorized reproduction is not allowed. If you want to reprint, please pay attention to the official micro-signal Hong Kong stock decoding, message to obtain authorization.