From the perspective of income, money funds are indeed better than demand deposits. In terms of risk, the risk of the money fund is indeed relatively small, and the money fund's capital preservation is absolute.

Money funds only invest in the money market, such as short-term government bonds, repurchase, central bank bills, bank deposits, etc. And there is basically no risk. Also known as "quasi-savings products", its main features are "worry-free principal, convenient demand, regular income, daily income and monthly dividends". Its liquidity is second only to bank demand deposits, and its income is calculated every day. Generally, the one-month income is carried forward to the fund share, and the income is slightly higher than the one-year time deposit, and the interest is tax-free. The principal of the Monetary Fund is relatively safe, with an expected annual rate of return of 3.9%. It is suitable for liquid investment tools and a substitute for savings. It can be redeemed at any time. After applying for redemption, the funds will generally arrive the next day, which is very suitable for units and individuals pursuing low risk, high liquidity and stable income.