Fund is a common financial management method, and the investment risks of stock funds and hybrid funds are relatively high, so many investors with low risk preference will choose financial funds and monetary funds to invest. So what's the difference between a financial fund and a money fund?

The difference between financial funds and monetary funds

1, investment threshold

Money funds usually have no investment threshold and can be purchased as low as 1 yuan. However, the wealth management fund needs 1000 yuan to purchase. Although the investment threshold of wealth management funds is higher than that of monetary funds, it is far lower than that of bank wealth management products, so it is also suitable for small investors to participate.

2. Investment cost

Wealth management funds have no subscription and redemption fees, but they need to charge a small amount of management fees and service fees. The redemption rate of money funds is basically zero, so the investment cost of money funds is lower than that of wealth management funds.

3. Purchase rules

There are two kinds of subscription for financial management funds. One is that after the fund is opened for subscription, investors can buy it at any time during the trading day. Another kind of wealth management fund is similar to wealth management products, and it is open for subscription and redemption on a regular basis. Monetary funds generally support 24-hour subscription at any time.

4. Expected return on investment

Wealth management funds mainly invest in securities such as stocks, treasury bonds and bank deposits, while money funds mainly invest in money market instruments such as central bank bills and bank deposits, so the expected income level of wealth management funds is generally higher than that of money funds.

The above content about the difference between financial funds and monetary funds, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.