With the increase of people's income, more and more people begin to invest in funds. There are many types of funds, and many investors don't understand the differences between different funds. So what's the difference between money funds and bond funds?

What's the difference between a money fund and a bond fund?

The investment targets of 1 are different: money funds invest in money market instruments (within one year), and bond funds invest in bonds, which can be long-term bonds or short-term bonds.

2 Different ways of making profits: the money fund's profit comes from interest, while the bond fund's income mainly comes from the rise of bond prices.

3 Different risks: Money funds invest in money market instruments, which are issued by institutions with high credibility, so it is difficult for money funds to lose money. Bond funds are easily affected by market interest rates. If the market interest rate rises sharply, the net value of the debt base will fall.

The above is the difference between money fund and bond fund. Money fund can be used as a means to allocate idle funds, and it is necessary to realize that the risks of bond fund investment are mainly interest rate risk and credit risk.