The money fund is a special tool for investing in the money market, which has the characteristics of low risk, high security, high liquidity, stable expected return and "quasi-savings". National debt, also known as national debt, is a kind of government bond issued by the central government to raise financial funds, which promises to pay interest within a certain period of time and repay the principal at maturity. What's the difference between a money fund and a national debt?

The difference between monetary fund and national debt

1. Monetary funds and national debt are different in nature. Monetary fund belongs to fund type, and national debt belongs to bond type.

2. The investment direction is different. The investment direction of money funds is generally high-security money funds or high-liquidity products such as bank deposits, while national debt is generally policy investments such as military industry and finance.

3. Their mobility is different. Money funds have no fixed interest rate, but they can be bought and sold at any time, and their liquidity is very high. Treasury bonds are generally fixed interest rates, and under normal circumstances, the expected returns of both are higher than bank deposits.

4. Different interest-bearing methods: the Monetary Fund takes the expected annualized rate of return of 7 days as the benchmark and does not make any guarantee; National debt has a fixed expected income, and the principal and interest are repaid at maturity.

Similarity between Monetary Fund and National Debt

1, both of which have low purchase thresholds. The denomination of the national debt is 100 yuan, and the purchase amount is an integer multiple of 100. Monetary funds generally start with 1 yuan, 100 yuan and 1000 yuan.

2. The investment risks of money funds and treasury bonds are relatively low in similar products, which are suitable for conservative investors and conservative investors.

3. The interest rates of money funds and government bonds are higher than those of ordinary bank time deposits.