The difference between bond funds and money funds
1, with different risks.
A major difference between bond funds and money funds lies in the level of risk. Compared with money funds, bond funds are more risky. Bond funds will have price fluctuations in the short term, which does not guarantee the expected principal return, but generally grows steadily in the long term. Monetary funds are relatively safe and have the advantage of capital preservation.
2. There are differences in expected income opportunities.
Because bond funds are more risky, their expected returns will be greater; Its expected income level is generally higher than that of the money fund. Of course, the expected return level of different bond funds is also different.
3. Liquidity differences
Monetary funds also have the characteristics of high liquidity. Although both can apply for redemption at any time, money funds are faster, generally T+ 1, and some money funds, such as Yu 'ebao, are more convenient to use. Bond funds are generally affected by the settlement speed of fund companies, which generally takes at least two or three days.
4. Different investment directions
Money 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 use a small proportion of high expected returns to obtain value.
5. Interest is calculated in different ways.
The Monetary Fund calculates the expected return of 1 10,000 copies with the expected annualized return on the 7th as a reference; Bond funds calculate the expected return according to the net value of the fund, and neither of them guarantees the expected return.
The above is the relevant content of the difference between bond fund and money fund, which is for reference only and I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.