Money fund is a low-risk investment product that many investors know. However, on platforms such as Alipay, currency enhancement funds have emerged, such as Bosera Good Currency and E Fund Good Balance. So what is a currency enhancement fund? What's the difference with the money fund?

1. What is a currency enhancement fund?

Currency-enhanced fund is a kind of fund portfolio product that includes multiple money funds and bond funds. When investors buy money-enhanced funds, they also buy multiple money funds and bond funds.

There are many money enhancement fund products on Alipay, and the matching ratio of goods base and debt base is about 7:3. For example, the fund portfolio of E Fund under Yu 'ebao includes three funds, of which the money fund accounts for 65% and the other two short-term debt funds account for 35%.

Second, the difference between monetary enhancement fund and monetary fund

1, risk

The risk of bond fund is higher than that of money fund, because money enhancement fund contains a certain proportion of debt base, so theoretically the risk of money enhancement fund is higher than that of money fund.

However, from the perspective of issued currency enhancement funds, the proportion of bond funds is generally less than 40%, and low-risk short-term debt funds and pure debt funds are the main ones, so currency enhancement funds also belong to low-risk or medium-low-risk products.

2. Expected rate of return

Because the expected rate of return of bond funds is generally higher than that of money funds, the expected rate of return of money-enhanced funds is generally higher than that of money funds.

1654381the data released by various money enhancement funds on October 27th show that the expected rate of return in the past year is above 3%, with the highest rate of return reaching 3.96%. The expected annualized rate of return of the Monetary Fund in the past seven days is generally around 2.4%.

The expected expected rate of return of different currency enhancement funds is also different. The greater the proportion of general debt base, the higher the expected rate of return. For example, Bosera's debt base accounts for 60%, and its expected expected rate of return is relatively high.

The above content about what is a monetary enhancement fund, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.