1. Differences between bond funds and monetary funds

1. Different investment scope.

bond funds refer to funds that mainly invest in bonds.

money funds, that is, money market funds, refer to funds that invest in money market instruments.

2. The applicable population is different.

The risk of bonds is low, so bond funds are generally considered as investment tools with moderate returns and risks.

Money funds have lower risk and good liquidity, but the long-term yield is low.

3. Subscription and redemption

The subscription fee of the Monetary Fund is , but the Monetary Fund draws no more than .25% of the service management fee from the fund fee. In addition, the monetary fund's net fund value is fixed at 1. yuan/share, and the part beyond 1 yuan will be distributed with dividends, and the income will be distributed daily.

the subscription fee of bond funds is generally below 1%, and the unit net value changes every day.

4. Different investment objects

Bond funds mainly invest in bonds, and some can also invest in stocks;

the money fund mainly invests in short-term securities in the money market, such as treasury bills, negotiable certificates of deposit of large banks, commercial bills and corporate bonds.

5. Different risks and returns

Bond funds have higher risks and higher expected returns than money funds;

Money funds are almost risk-free, so their returns are low.

6. Different purchase fees

Except for a small number of bond funds, there are generally subscription fees and redemption fees;

the money fund has no subscription/subscription fee and redemption fee.

7. The arrival time is different.

the redemption time of short-term debt funds is the same as that of monetary funds, and the redemption time of ordinary bond funds is T+5 working days;

when the monetary fund is redeemed, the time for the funds to arrive in the account is T+2 working days. Bond funds have higher returns than money funds, but they also have higher risks.

Second, the connection between bond funds and monetary funds

1. Although both monetary funds and bond funds belong to less risky investment varieties, the market has already told us that any investment is risky. For example, the "debt thunder" in the first half of the year has severely thundered many debt-based holders. In the case of no commitment to capital preservation, they may all fail to do so.

2. Money funds are usually considered as having little risk, which is the case, but it does not mean that there is no risk. For example, huge redemption refers to the sudden and huge redemption of money funds.

3. Once the money fund encounters such a situation, the fund manager has to sell the fast-maturing bonds held by the fund to cope with redemption, such as "selling at a loss" the bonds held by the fund at a lower price. Once the sale price is low enough, the fund net value of the money fund may fall below 1 yuan, which means that the money fund usually loses money.

Extended information:

Guaranteed Fund: a fund that provides a certain proportion of the principal invested in a certain period of time. The fund uses interest or a very small proportion of assets to engage in high-risk investment, and most of the assets are engaged in fixed-income investment, so that the market invested by the fund will never be lower than the guaranteed price no matter how it falls.

internationally, capital preservation funds can be divided into two types: guarantee fund and protection fund, among which protection fund does not need a third party to provide guarantee. Generally speaking, capital preservation funds invest most of their assets in fixed-income bonds, so as to pay the investors' principal at the expiration of the fund term, and the remaining assets are about 15%-2% invested in tools such as stocks to improve the return potential.

Reference: Bond Fund Baidu Encyclopedia? Money fund Baidu Encyclopedia