How does money funds (Yu'ebao) make money?

The United States is a teacher in this industry.

In the 1970s, the United States was in a period of economic recession and high inflation.

Simply put, the interest rate for bank deposits is too low, while the social inflation rate is high.

Money in the bank will become less valuable.

Originally, you could buy 100 eggs for 100 yuan, but after depositing them in the bank for a year, it turned out to be 102 yuan. However, after a year, the price of eggs increased, and you could only buy 98 eggs for 102 yuan.

The money was deposited in the bank for a year, and on the surface it was two more yuan, but in fact it was a loss of two yuan.

But the interest rate of the bank is not fixed. If you have 100 million in your hand, you will have the capital to negotiate with the bank and let the bank give you a higher interest rate. In a year, the principal and interest will no longer be 102 million, but 105 million.

In other words, the annual interest rate of ordinary people is only 2%, while the rich can achieve 5%.

At this time, a fund administrator named Ruth Banter had a genius idea.

Simply put, he combined the money of a group of ordinary people and turned it into a huge fund pool, and then used the money to buy high-interest regular savings.

The money was eventually stored in the bank and paid interest, but it was originally deposited directly by retail investors, and became stored in the bank through his hands.

It turns out that everyone's savings in the bank are only 2% interest rates, and after all the money is handed over to Ruth Bant, he can negotiate a fixed interest rate of 5% with the bank.

In the end, Ruth Bante gave retail investors a 4% interest rate, and as a middleman, he took away that 1%.

If the fund pool has 100 million, the total interest is 5 million, and the user is 4 million, he will be rewarded with a commission of 1 million.

If there is 100 billion, he can draw 1 billion.

Retail investors and fund managers can achieve a win-win situation.

As the largest money fund country, the United States has reached US$2.5 trillion, which shows how big this market is.

As the world's second economy, my country's total monetary funds are also as high as several trillion.

Yu'ebao is also connected to a money fund. At its peak, the funds in it exceeded one trillion yuan.

As the fund managers, Yu'ebao and Tianhong have annual net profits as high as 10 billion yuan.

...

Luo Xiu now proposes to make rice ball treasures. In addition to making a spread, it is more important to keep the user's money in the rice ball treasure. So when users pay, they must also use rice balls to pay.

And rice balls can charge a transaction fee.

It can be said that after a win-win situation, we will win again.

After Luo Xiu's idea was proposed, it was frantically opposed by the company's CFO and legal counsel.

"Mr. Luo, your idea is too bold. I absolutely do not support you in doing this."

"What's the reason?" Luo Xiu asked back.

"This involves financial security and financial risks, and we cannot do anything randomly!"

As the company's chief financial officer, if something really happens, not only will the boss have to go in, but he will also have to go in.

The boss has high risks and high returns, while he has low returns and high risks, so of course he has objected.

Li Shan next to him interrupted and said, "Why do I want to do it even more when I hear the words 'can't do it randomly'?"

He himself is the kind of master who is not afraid of heaven or earth, but no matter what the risks are, he will do it first.

"I'm not doing this to make a lot of money from it, but to build a more convenient payment method, so I have to continue doing it anyway."

Luo Xiu paused for a moment and continued: "As for the risks, first of all, we are willing to accept all supervision, and secondly, if necessary, I can also give it to the country."

"Unless we can get approval from relevant departments, we will ensure that we will not be held accountable afterwards."

Although the boss said that he could give it to the country, that was not done yet.

If it really makes a very large scale and the market value exceeds one trillion yuan, will the boss still be willing to pay the rice balls to the country?

When there is really a cow, that's not what it said.

Therefore, everyone's promise to the boss is just listening to it and not taking it seriously.

A man's mouth is a lie to others. A boss's mouth is also a lie to others.

What's more, this is a male boss, which is equivalent to the square of a deceitful ghost.

"There will be no approval." Luo Xiu directly asserted, "No one will come out to take responsibility except for ourselves. We can only be ahead of the policy."

Everyone fell silent after hearing what the boss said.

We are a developing emerging country and walk by the stones in many ways.

Many things have to be done first. After the results are achieved, everyone will sit down and discuss relevant laws and regulations.

Now no one can guarantee the end of the matter, nor do they dare to express any opinions casually.

In fact, it is walking by the stones for others, but it is not true for Luo Xiu.

Although this river looks very turbid, someone has touched it, and Luo Xiu is just following behind.

He knows what places are safer and where there are dangers.

But he can only know these things in his heart and cannot explain them to everyone.

At this time, Guan Shiyu stood up and said, "In the past few years, the boss has made many decisions that were not understood at the time, such as selling copyrights and hoarding land... But time finally proved that the boss's decisions were all right. Now it is just a bolder decision. If I want to believe him, I will be the person in charge of the Rice Tuanbao!"

After hearing her, Luo Xiu thought to himself that you are easier to deceive... No, you still understand me.

Some other swaying people couldn't help but nodded secretly after hearing the boss's wife's words.

At this time, Li Shan also expressed his opinion: "I must support Brother Xiu. If I want to sign a letter of responsibility, I will be the first to sign."

"I'm also my part, and I also support Mr. Luo's decision."

"We'll play a big one."

"Since everyone says that, I have no objection."

...

In the conference room, everyone expressed their opinions.

Luo Xiu then spoke, "This matter is not that serious, don't make it so tragic, this is just a normal business decision."

He paused and continued, "Next, I will completely split the rice balls, rice balls, and rice balls, especially the rice balls. My plan is to bring in several state-owned banks to work together and hold shares with each other, so that you don't have to worry about anything."

“Are those old antiques in the bank willing to play with us?”

"They should look down on us, right?"

"Even if they are willing to join, they will definitely want to take over the big deal."

...

Luo Xiu smiled and said, "Then wait until we start to build a scale and ask them to join. I don't believe that they have more than 100 billion yuan in their hands. What confidence do they have to negotiate with me?"
Chapter completed!