Among all kinds of fund products, bond funds and money funds are relatively stable fund varieties, with stable expected returns and low risks. For investors who pursue stable expected returns, debt-based and goods-based are good choices, so which is better to buy bond funds or money funds?

First, is it better to buy a bond fund or a money fund?

1, Monetary Fund

Money funds have higher requirements on the credit rating and liquidity of investment targets, and mainly invest in money market instruments, such as bonds and central bank bills, which have the advantages of high security and strong liquidity. However, the expected rate of return belongs to the low category in wealth management products, only slightly higher than bank deposits, also known as "quasi-savings products".

2. Bond funds

Bond funds are also divided into pure bond funds, primary bond funds and secondary bond funds. Among them, pure bond funds refer to funds that invest in bonds, and both primary bond funds and secondary bond funds have some assets invested in stocks.

The main issuers of bonds in China are the central government, local governments and financial institutions, and the risk of bond default is low, so the risk of bond funds is lower than that of primary bond funds and secondary bond funds, but slightly higher than that of monetary funds.

2. Which is suitable for short-term holding, bond fund or money fund?

1. Money funds generally have no subscription and redemption fees and are highly liquid. They are suitable for short-term funds as cash management tools, so they are more suitable for short-term financial management. Moreover, because the expected rate of return of the money fund is too low, it is not recommended to hold heavy positions.

2. Most of the subscription and redemption of bond funds require certain handling fees, such as redemption fees and sales service fees. The longer the holding time, the lower the handling fee rate. Moreover, the expected return of short-term debt funds is short-term, and the effect of long-term holding is more prominent than that of money funds, so bond funds are more suitable for long-term holding.

The above content about whether to buy a bond fund or a money fund is good, I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.