Money market funds mainly invest in short-term bonds, central bank bills and bond repurchases. , and the investment scope of RMB wealth management products of banks is roughly the same. The differences between them mainly focus on safety, yield, liquidity, flexibility, starting point and so on. Judging from the current situation, money market funds are better than bank wealth management products. First of all, from the perspective of security, money funds are stronger. As a fund product, money market funds are protected by both trust law and fund law. Fund assets must be deposited in banks with custody qualifications, and the establishment and operation of their accounts are strictly independent of fund managers and custodians to ensure the security and independence of fund assets. At the same time, the CSRC has specially promulgated the Regulations on the Management of Money Market Funds, which has clear rules and restrictions on the investment scope and term structure of money market funds and strict requirements on the information disclosure of funds. Therefore, compared with the current wealth management products issued by banks, the operation of money market funds is relatively more transparent, and the risk monitoring mechanism and measures are more strict and perfect.

Secondly, from the perspective of yield, there is little difference between the two. The yield of bank wealth management products is relatively fixed. For example, the annualized rate of return of bank wealth management products from the current six months is around 4%-5%. However, the yield of money market funds is relatively floating. In the first half of this year, for example, the yield of Xincheng Currency B, which has the largest share of Currency B, is 2.56% in the first half of this year, and the annualized rate of return is about 5. 12%, which is almost the same. However, one of the benefits of the money fund is that the fund dividends are not only exempt from interest tax for individual investors, but also exempt from income tax for enterprises according to regulations.

Third, from the perspective of liquidity, money funds are higher. Compared with RMB wealth management products, there is a lock-in requirement for a period of time, and the liquidity of money market funds has a very prominent advantage. Money market funds can be purchased and redeemed at any time, and there is no handling fee. Generally, the money can be received within two days after the redemption application is filed.

Fourth, from the perspective of flexibility, the money fund is bigger. No other products of RMB wealth management products can be converted to each other, even if the same product has different maturities, there is no room for conversion. Money market funds can be exchanged with other types of fund products under the same fund company, so that investors can seize opportunities in the capital market in time and conveniently while investing in the money market.

Finally, from the point of purchase, the money fund is even lower. The purchase starting point of RMB financial planning is more than 50,000 yuan, and the investment starting point is relatively high. The subscription starting point of money market funds is mostly around 1 1,000 yuan, and subscription fees and redemption fees are exempted.