Difference 1: the starting point of money market fund subscription is generally around 1000 yuan. Supplemented by some specific investment plans, if investors participate in the regular fixed investment plan of southern fund Company, the subscription threshold is only 200 yuan.
The threshold of RMB financial planning is higher. The investment starting point of several banks ranges from 6,543,800 yuan to 50,000 yuan. Most banks have other requirements and restrictions on buyers, such as tying a certain percentage of time deposits and so on.
Difference 2: Liquidity One of the advantages of money market funds called "demand savings" is liquidity. Customers can purchase and redeem at any time, which is very convenient. Redemption can be made from the second working day after purchasing this fund.
RMB wealth management products are more like a substitute for "regular savings". The bank's RMB wealth management products belong to closed management, and the expected annualized rate of return is linked to the number of years, so investors can't redeem them at any time, and their liquidity is also restricted.
Difference 3: The management organization of money market funds is fund companies, while the management organization of RMB wealth management products is banks.
Difference 4: Expected annualized rate of return Money market funds and RMB wealth management products are relatively safe wealth management products, and both can be used as substitutes for savings. Compared with RMB wealth management products, money market funds have the characteristics of monthly compound interest, interest rate increase, rolling investment and expected annualized income tax exemption, so it is possible to obtain higher expected annualized income.
The expected annualized rate of return of RMB wealth management products is relatively low, which is closely related to the investment years.
Difference 5: RMB wealth management products are risky and belong to regular wealth management, which has certain risks. Because investors can't withdraw money halfway, the expected annualized rate of return may be lower than the expected annualized interest rate of future savings; Money market funds with flexible investment can better cope with this trend, because their expected annualized rate of return will rise with the increase of the expected annualized rate of return of the invested varieties.
Difference 6: handling fee Money market funds can be purchased and redeemed at any time without any handling fee; However, if investors cancel RMB wealth management products in advance, they need to pay a certain cancellation fee.