Currency funds and bond funds are two types of investment funds with higher security in the fund investment market. They both have the advantages of strong liquidity and expected income levels higher than the current bank interest rates. They have attracted the attention and favor of investors. Then bond funds and

What is the difference between money funds?

Let’s talk about it next.

The difference between bond funds and money funds 1. Different risks A major difference between bond funds and money funds is the risk level. Compared with money funds, bond funds have greater risks. Bond funds will have short-term price fluctuations and do not guarantee the principal.

Expected returns generally grow steadily over the long term; while monetary funds are safer and have the advantage of capital preservation.

2. Differences in expected return opportunities. Since bond funds have greater risks, their expected returns will be greater; their expected return levels are generally higher than those of money funds.

Of course, the expected return levels of different bond funds are also different.

3. Liquidity difference: Monetary funds also have the characteristics of high liquidity. Although both can be applied for and redeemed at any time, the currency fund has a faster arrival speed. Generally, T+1 is enough. Some currency funds, such as Yu'e Bao, etc.,

It is more convenient to use it anytime.

Bond funds are generally affected by the settlement speed of the fund company, which usually takes at least two or three days.

4. Different investment directions: Monetary funds invest in cash deposits with strong liquidity and high security; bond funds can generally invest in fixed expected returns, and have the opportunity to gain value by utilizing a smaller proportion of high expected return targets.

5. Interest calculation methods are different. Monetary funds use the expected 7-day annualized expected return rate as a reference and calculate expected returns based on 10,000 shares; bond funds calculate expected returns based on the net value of the fund. Neither of them guarantees expected returns.

The above is the relevant content about the difference between bond funds and currency funds. It is for reference only. I hope it will be helpful to everyone.

Warm reminder, financial management is risky, so investment needs to be cautious.