1. The risks and benefits of the money fund are relatively small, and generally there is no loss; However, the risks and benefits of equity funds are relatively large, and they are easy to lose money, and they may also get higher returns.

2. Equity funds and money funds mainly raise funds with different investment directions.

The assets of the Monetary Fund are mainly invested in short-term monetary instruments (generally within one year, with an average term of 120 days), such as treasury bonds, central bank bills, commercial bills, bank time deposit certificates, government short-term bonds, corporate bonds (with high credit rating), interbank deposits and other short-term securities.

Equity fund refers to a fund in which more than 60% of fund assets are invested in stocks. At present, there are bond funds and money market funds besides stock funds in China.

There are great differences between money funds and stock funds. First, the money fund mainly invests in the money market, with stable income and low risk. Equity funds invest in stocks in the secondary stock market, with high returns and high risks. Secondly, the participation fee, withdrawal fee and management fee of money funds are lower than those of stock funds. Moreover, money funds generally have no closed period, and many stock funds have closed periods, during which they do not accept subscription and redemption. There are also bond funds, graded funds and mixed funds. , in between.