First of all, the content is different:

1. The essence of money fund: it is an open-end fund that gathers idle social funds, is operated by the fund manager, and is kept by the fund custodian. It specializes in investing in low-risk money market instruments, which is different from other types of open-end funds and has the characteristics of high security, high liquidity, stable profitability and "quasi-savings".

2. The essence of bond funds: refers to funds that invest in bonds. By pooling the funds of many investors, it makes portfolio investment in bonds and seeks relatively stable returns.

Second, the investment target is different:

1. Investment target of the Monetary Fund: The assets of the Monetary Fund are mainly invested in short-term monetary instruments (generally within one year, with an average maturity of 120 days), such as treasury bonds, central bank bills, commercial bills, bank time deposit certificates, short-term government bonds, corporate bonds (with high credit rating), interbank deposits and other short-term securities.

2. Investment targets of bond funds: In China, the investment targets of bond funds are mainly government bonds, financial bonds and corporate bonds.

Third, the characteristics are different:

1, the characteristics of the money fund:

(1) enables ordinary investors to participate in the investment of inter-bank bonds, corporate bonds, convertible bonds and other products conveniently. These products have various inconvenient restrictions on small funds, and buying bond funds can break through this restriction.

(2) When the stock market is in a downturn, the income of bond funds is still very stable and is not affected by market fluctuations. Because the product income invested by bond funds is very stable, the corresponding fund income is also very stable. Of course, this also determines that its income is subject to the interest rate of bonds and will not be too high. The annual interest rate of corporate bonds is around 4.5%, and the annual rate of return can be guaranteed to be between 3.3% and 3.5% after deducting the operating expenses of the fund.

(3) Only by holding it for a long time can we get a relatively satisfactory return.

(4) When the stock market skyrocketed, the income remained stable at the average level, which was lower than that of equity funds. When the bond market fluctuates, there is even the risk of loss.

2, the characteristics of bond funds:

(1) The principal is safe. Most money market funds have the lowest risk among all kinds of funds, and money fund contracts generally do not guarantee the safety of principal, but in fact, due to the nature of funds, money funds rarely lose principal in reality. Generally speaking, money funds are regarded as cash equivalents.

(2) Strong capital flow. Liquidity is comparable to demand deposits. The fund is easy to buy and sell, with short time to receive funds and high liquidity. Generally, the funds will arrive in a day or two after redemption. At present, some fund companies have opened the instant redemption business of money funds, which can be received on the same day.

(3) Low investment cost. Money market funds are generally free of handling fees, and the subscription fee, subscription fee and redemption fee are all zero, so it is very convenient for funds to enter and exit, which not only reduces the investment cost, but also ensures liquidity. For the first subscription/subscription, 1000 yuan, and for the second subscription, 100 yuan will be increased.

(4) Dividends are tax-free. Most money market funds always have a face value of 1 yuan, and the income is calculated every day, and there is interest income every day. Investors enjoy compound interest, while bank deposits are only simple interest. Monthly dividends are carried forward as fund shares, and dividends are exempt from income tax.

Legal basis:

Article 10 of the Securities Law of People's Republic of China (PRC) Where an issuer applies for public offering of shares, corporate bonds convertible into shares, adopts the underwriting method according to law, or publicly issues other securities subject to the sponsorship system as stipulated by laws and administrative regulations, it shall employ a securities company as a sponsor.

The sponsor shall abide by the business rules and industry norms, be honest and trustworthy, be diligent and conscientious, carefully check the application documents and information disclosure materials of the issuer, and supervise the standardized operation of the issuer.