What is the difference between debt base and money fund?
The underlying assets of 1 are different. The basic assets of debt base are bonds, and the basic assets of money fund are money market tools.
2 The characteristics of risk and return are different. Theoretically, the risks and potential returns of money fund assets are lower than those of bond funds.
3. With different liquidity, money funds have better liquidity and can be redeemed, and the price fluctuation is small, so bond funds may face certain price fluctuation when redeeming.
4 Different investment costs, money funds do not need to charge subscription fees, while bond funds need to charge a certain subscription fee.
For investment and financial management, generally, more assets can be allocated among low-risk assets, and the higher the risk, the lower the assets should be allocated. Therefore, from the perspective of investment, it is reasonable for us to allocate more assets in the money fund than in the bond fund.