According to the classification criteria of fund categories in the Measures for the Administration of Securities Investment Funds, money market funds only invest in money market instruments. Funds can be divided into stock funds, bond funds, money market funds and mixed funds according to different investment objects. According to the classification standard of fund categories in the Measures for the Administration of Securities Investment Funds, more than 60% of fund assets are invested in stocks. More than 80% of the fund assets invested in bonds are bond funds; Money market funds only invest in money market instruments; Investing in stocks, bonds and money market instruments, but the ratio of stock investment to bond investment does not meet the requirements of stock funds and bond funds, is a hybrid fund.

These fund categories are listed as follows: stock funds, mixed funds, bond funds and money market funds, that is, stock funds have the highest risk return and money market funds have the lowest risk return. Money market funds refer to investment funds that invest in short-term (within one year, with an average term of 120 days) securities in the money market. Short-term monetary instruments, such as treasury bills, commercial paper, bank time deposit certificates, bank acceptance bills, government short-term bonds, corporate bonds and other short-term securities, have the characteristics of stable income, strong liquidity, low purchase limit and high capital security. Another feature is that the main difference from other funds that invest in stocks is that the net asset value of each fund unit is fixed, usually per fund unit 1 yuan. After investors invest in this fund, they can reinvest with the proceeds, and the investment income will accumulate continuously to increase the fund share owned by investors.