Bond funds, also known as bond funds, refer to funds that specialize in investing in bonds. By concentrating the funds of many investors, we can make portfolio investment in bonds and seek relatively stable returns. Bonds are creditor's rights and debt certificates issued to investors when the government, financial institutions, industrial and commercial enterprises and other institutions directly borrow money from the society to raise funds, and promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions.

Monetary fund is an open-end fund that collects idle social funds, is operated by fund managers and kept by fund custodians. It is a special investment tool in the money market with low risk.

2. Different characteristics

Different from other types of open-end funds, money funds have the characteristics of high security, high liquidity, stable income and "quasi-savings".

In China, bond funds mainly invest in government bonds, financial bonds and corporate bonds. Usually, bonds provide investors with a fixed return and repay the principal at maturity, and the risk is lower than that of stocks. Therefore, compared with stock funds, bond funds have the characteristics of stable income and low risk.

3. Different investment targets

Money fund is an open-end fund, while bond fund is a fund that specializes in investing in bonds, mainly treasury bonds, financial bonds and corporate bonds.

Baidu Encyclopedia-Monetary Fund

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