Money funds are mainly funds that invest in the money market. The reverse repurchase of government bonds is equivalent to a short-term loan, that is, you lend money to others and then get fixed interest, and others use government bonds as collateral to repay the principal and interest at maturity. So, which income is higher, the reverse repurchase of government bonds or the money fund? How to choose? We have prepared relevant contents for your reference.

It depends on which yield is higher, the reverse repurchase of government bonds or the money fund. The yield of reverse repurchase of government bonds will fluctuate relatively, sometimes higher than the money fund and sometimes lower than the money fund.

Generally speaking, if you buy reverse repurchase of government bonds at the end of the quarter, at the end of half a year, before the end of the year and before legal holidays, the income will be higher than that of the money fund, because the market demand for funds will increase at this time, so the interest on reverse repurchase of government bonds is higher at this time, and the annualized rate of return sometimes even exceeds 10%.

The income of the money fund is relatively stable, because the money fund mainly invests in the money market, so the risk is relatively small and the income is relatively stable, which is more suitable for conservative investors to hold, while the income of the reverse repurchase of government bonds depends on the situation, which is not fixed and fluctuates greatly.

Generally, investors who pursue relatively good liquidity, relatively stable risk and relatively low risk are more suitable for money funds. The liquidity of the money fund is very good and there is no fixed term. It will usually arrive at T+ 1 If they pursue higher returns, they can give priority to the reverse repurchase of government bonds.