Research On The Yield Fluctuation Of Internet Monetary Fund In China

In the process of the sustainable development from Internet industry into the traditional financial industry,the fund industry has undergone a new round of transformation under the wave of the Internet.On June 13,2013,the emergence of "Yu’E Bao" set off a wave,the yields have been rising and become a hot product about the Internet Money Fund.Under the guidance of “Yu’E Bao”,more and more Internet money fund products have been created.And monetary fund products of financial institutions such as Huaxia and Tianhong have developed rapidly through platforms such as Ali,Tencent and Baidu,investors have also grown rapidly.It can be said that the Internet money fund,as a "catfish",has subverted the financial industry that was originally the most barriers,activated financial market,increased the utilization rate of idle funds in the society,and changed the form of fund industry.However,with the development in recent years,judging from the changes in the yield of the Internet fund,till the end of November 2019,the yield of the “Yu’E Bao” has dropped to 2.3%,from the original golden period 6.763% to 2.3% today,China’s Internet money fund market has gradually declined from the original high-yield return to a reasonable level.According to the research report of iResearch,one of the most important factors for Chinese investors in the financial market is the rate of return on the product.Therefore,facing current downward trend about the yield of "Yu’E Bao" money funds,research the characteristics of Internet money fund yield fluctuations have important significance for financial markets and investors.This article sorts out relevant research literatures about Internet money fund.Firstly,defining the concept of the Internet monetary fund in this article and combining related theoretical foundations to study it.In order to make better horizontal comparisons and find different characteristics of the opposite in the commonality on the basis of studying the common characteristics of the fluctuation characteristics of the return rate of Internet money funds in China,this paper divides Internet money funds into three categories according to resset database after defining the concept,including : platform department,commercial bank department,and fund department.Then,this article summarizes the research methods of yield volatility according to relevant research literatures and selects the GARCH model for this article as an empirical model.In the empirical part,firstly,analyzing the fluctuation trend of the yield about the three types,then this article collected the return data of the three types from February 16,2014 to September 30,2019 through the tiantian fund network.The empirical results demonstrate the return rate of China ’s Internet currency funds shows a downward trend as a whole;from a detailed point of view,the aggregation,thicktailed,non-"mean recovery" and asymmetry of the return volatility are common characteristics of the yield volatility,and the difference characteristics are that kurtosis distribution and the rate of return fluctuations:On the one hand,the fund department shows spike characteristics and are more prone to extreme values,platform and commercial bank department show peak characteristics;On the other hand,the platform fund has the smallest fluctuations in the rate of return,the risk is the smallest,and the fund department has the largest fluctuation in the rate of return.Finally,this article analyzes the causes of this phenomenon based on the empirical results of,including fund market non-efficiency factors,fund management factors themselves and investor psychological factors.Among them,the non-effectiveness factors of the fund market include information asymmetry,the absence of legal supervision and irrational investor structure;the factors of fund management itself include the operation mode of the fund and the allocation of fund assets;and the psychological factors of the investor include investment opportunities and herding effects.Then,relevant suggestions are made for the development of China’s Internet money fund based on the above reasons.