Money fund is the most familiar way to manage money, and there are various forms of financial products. Do you know which is better, money fund or wealth management products?

1, safe

The first condition of investment and financial management is the safety of products. The security of money funds is very high. There have only been two losses in history, but most money fund products are at a loss. Most wealth management products are non-guaranteed wealth management, and the security is related to the investment direction, which is lower than that of money funds.

2. Expected rate of return

Monetary fund products give consideration to safety and expected returns, and in most cases the expected returns are mainly stable. Among wealth management products, the expected rate of return of products with higher risks will be much higher than that of money fund products, so the expected rate of return of wealth management products is better.

3. Risk

Money fund is a low-risk financial management method, with low risk, comparable to bank demand savings. Different types of wealth management products have different risks, such as hybrid funds and equity funds, and the investment risk is higher, so the risk of wealth management products is greater.

4. Capital preservation

Neither the money fund nor the wealth management products are guaranteed, but the money fund products are very guaranteed, and the principal is rarely lost. If the wealth management product is high-risk wealth management, the principal may be lost, so the money fund has stronger capital preservation.

5. Service charge

Money fund products are purchased and redeemed at zero rate, but some wealth management products are charged, so the cost of wealth management products is more.

Step 6 be flexible

Monetary fund products support 7*24-hour redemption and subscription, while wealth management products are usually limited by product term, so the capital flexibility is poor.

Comparatively speaking, money fund products are better than wealth management products, which is why money fund is the fund that China people buy the most. Although the expected rate of return of the money fund has been significantly reduced, there are still many people who are willing to deposit their money in the money fund on the premise that the expected rate of return is still higher than the bank demand.