Is It Not A Matter Of Trouble When The US Dollar Enters The Appreciation Cycle And Chooses The Bond Fund?

The US dollar has entered the appreciation cycle. It is expected that the Federal Reserve will raise interest rates not less than three times in 2017.

Once the US dollar entered the appreciation cycle, a considerable number of people began to ponder over the appreciation of RMB's value.

Many people's instinctive reaction is to convert their yuan into US dollars, but I don't think it's necessary to invest heavily in QDII funds.

The risk premium is high in the QDII fund's stock fund, and the moderate investors choose the QDII fund.

。

Many people may know that most of the QDII funds issued by fund companies are divided into two forms: the US dollar valuation and the renminbi valuation. The former is invested in US dollars and the latter is invested in Renminbi. But I am afraid that few people have paid close attention to the specific operation process of the QDII fund denominated in RMB. After receiving the RMB, the fund company needs to convert into US dollars at the exchange rate at that time to invest in the overseas market. When the base redeem it, it will convert the US dollar into RMB at the prevailing exchange rate.

Many people may not be aware that in the context of the appreciation cycle of the US dollar and the continued depreciation of the RMB, the significant opportunities of the QDII fund, which are priced in Renminbi, will be clear if we compare the two kinds of funds to the net value of US dollar interest rate increase.

In December 16, 2015,

On the same day, the net value of the two funds increased: the net value of the Nasdaq 100 Index Fund (US dollar) rose by 1.40%, and the Yuan's valuation portion of the fund fell by 0.06%; the net value of the Asia Pacific High Yield Bond (US dollar) rose by 0.06%; the renminbi's valuation of the fund rose by 0.18%; in December 15, 2016, the Federal Reserve raised interest rates again, and the net value of the Nasdaq 100 Index Fund (US dollar) rose by 0.22% on that day. The RMB's valuation part of the fund rose by 0.58%, and the net value of the Asia Pacific high yield bond (USD) remained unchanged.

Look at the long-term performance of the two funds after the news of interest rate increase.

The 100 Index Fund (US dollar) has increased by 0.58% in the last three months, and has reached 7.64% in the latest year. The net increase in the net part of the renminbi's net worth has reached 4.69% and 15.04% in the same period. The net value of the Asia Pacific High Yield Bond (US dollar) has increased by 0.45% in recent three months and 6.21% in recent years.

The QDII fund denominated in Renminbi is more than twice the cumulative increase in net worth in dollar terms, because the US dollar continues to appreciate against the renminbi.

It should be noted that not all QDII funds are suitable for the purpose of avoiding RMB depreciation. For example, the QDII fund, which is named after universal discovery, has a cumulative increase of -0.20% in the latest year. It can be found in its investment report that ten of the heavily used stocks invested are Chinese Listed Companies overseas.

Due to the high correlation between such funds and the A share market, it is clearly not suitable for investment.

The author suggests that we should choose the fund that will mainly invest in the US market, regardless of the performance in recent three months or the most recent year.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.