Research On The Operation Mechanism And Risk Of Internet Money Funds

By taking the rapid development of internet and the use of calculator into account, people's lifestyle and the way of social economic development has been completely changed. Internet Money Market Fund is a created production combined by internet and the finance business. Internet Money Market Fund earned highly respected by social as it breaks the traditional financial restrictions which has greater promotion in both efficient and resources. It already produced a huge and far-reaching impact in the whole world. However as an innovative financial product, the security of Internet Money Market Fund product is a big concern. Because of the lack of government regulation and management, operators profit motive, the risk Internet Money Market Fund is hard to estimate, it is difficult to maintain the sustainable and healthy development of economics. Although there are several papers focus on the risks of Internet Money Market Fund, less of them are from the nature of the Internet Money Market Fund. This essay is based on the theory of Monetary Pyramid Model, in-depth analysis the mechanism of these product, try to find the key reason of the risks from management and other aspects. Thereby, in this essay currency non-mainstream pyramid structure based on the theory, aimed essentially level internet finance fund's analysis of the risks, to provide a theoretical reference for the sustainable and healthy development of the industry.Based on the research of all the world about Internet Money Market Fund. The paper use three methods to analysis the topic:normative analysis, statistical analysis, comparative analysis and case analysis, analysis of the nature of the internet finance fund:Fund liabilities issued by the company, it is a private bank debt the issued by financial institutions; and discussed the risk of the internet finance fund's risk of the mechanism; pyramid structure based on non-mainstream monetary theory. Low credit rating of the product, the larger the risk, also there is no guarantee of principal and interest to investors a comprehensive study of the characteristics and make relevant suggestions from operators, regulators and investors three suggestions.Compared with the existing achievements, this article try to use the non-mainstream Monetary Pyramid Model into the Internet Money Market Fund, analysis and interprete the operation mechanism and the risk of the occurrence of the Internet Money Market Fund, it has a certain degree of innovation.