As we all know, there are many different types of investment and wealth management products under the fund's investment and wealth management model. These wealth management products are different in expected returns, investment risks and trading methods. For example, money funds and stock funds are very different in expected returns and investment risks. So what do you mean by trading money funds and redeeming money funds? What's the difference between them? For this problem, we have prepared relevant knowledge for reference.

What do you mean by trading money funds and redeeming money funds?

Transactional money funds, as the name implies, are characterized by different transactions, and belong to the category of money funds in essence. They probably refer to money market funds that meet the conditions of listing and trading. They can bid in the trading system like stocks, but the purchase and redemption are still traded according to the net value of the funds, and the total share of the funds is not fixed and lasts forever.

Redemption of money fund, redemption of money fund is what we often say. Such funds can only obtain fund shares through subscription, and at the same time, they can only convert fund shares into cash through redemption, and cannot be bought and sold through the secondary market. All transactions are based on the net value of the fund.

What's the difference between them?

The main difference between trading money funds and redemption money funds is that one can trade real-time prices through the secondary market, and the other can't trade through the secondary market, only through subscription and redemption. Trading money funds are more convenient and more liquid. At the same time, trading money funds can be used as business margin for margin financing and securities lending, but redemption money funds cannot. Trading money funds can arbitrage through the difference between the on-site price and the off-site price, but redemption money funds can't.