With the increase in bank interest rates, is a fixed income fund or a deposit better?
When you hear news and speculation about the increase in bank interest rates, this logical question arises: "Is now the time to return capital to bank deposits? ".
Although the current interest rate on bank deposits (about 20.5%) is not competitive for fixed funds, the main question is: if the bank interest rate rises, what will happen to the funds?
Examining the performance structure of fixed funds shows that the bank's interest rate hike, contrary to public opinion, is not a threat to them, but an opportunity:
1. Positive interest transfer: A large part of the fund's assets are in fixed income deposits and bonds; therefore, as the bank interest rate increases, the fund's yield also increases directly.
2. Access to higher returns: Fund managers always get higher returns than the bank's base rate by buying government bonds, bonds and other money market instruments.
3. Managed optimization: professional management includes the use of a combination of different tools to achieve "optimal returns at low risk".
4. Advantage of liquidity and daily interest: advantages such as no penalty for early withdrawal and daily interest still maintain the absolute superiority of these funds over time deposits.
Finally, history has proven that in periods of elevated bank interest, reliable funds have always maintained their superiority. Currently, without raising the bank interest rate, the return of Qian's fixed fund for next year has been announced as 40%, which has a substantial difference with the bank deposit rate.
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