Money fund, bond fund and stock fund, what do they mean, what are their differences, and what are their characteristics or advantages?

1. Monetary fund is an open-end fund that collects idle social funds, is operated by fund managers and kept by fund custodians. Different from other types of open-end funds, money market instruments that specialize in investing in low risks have the characteristics of high security, high liquidity, stable income and "quasi-savings".

Second, the characteristics and advantages

1. Principal security: Most money market funds have the lowest risk among all kinds of funds. Money fund contracts generally do not guarantee the security of the principal, but in fact, due to the nature of the fund, the loss of the principal of the money fund rarely occurs in reality. Generally speaking, money funds are regarded as cash equivalents.

2. Strong liquidity: liquidity can be comparable to demand deposits. The fund is easy to buy and sell, with short time to receive funds and high liquidity. Generally, the funds will arrive in two or three days after redemption. At present, some fund companies have opened the instant redemption business of money funds, which can be received on the same day.

3. Higher yield: Most money market funds generally have the income level of national debt investment. Money market funds can not only invest in investment tools that ordinary institutions can invest in, such as exchange repurchase, but also enter the inter-bank bond and repurchase market and the central bank bill market for investment. Their annual net rate of return can generally be compared with the one-year time deposit interest rate. The annual income is shown in the table below, which is higher than the income level of bank deposits in the same period. Moreover, money market funds can avoid hidden losses. When there is inflation, the real interest rate may be very low or even negative. Money market funds can keep abreast of interest rate changes and inflation trends and obtain stable and high returns.

4. Low investment cost: Generally speaking, there is no handling fee for buying and selling money market funds, and the subscription fee, subscription fee and redemption fee are all zero, so it is very convenient for funds to enter and exit, which not only reduces the investment cost, but also ensures liquidity. For the first subscription/subscription, 1000 yuan, and for the second subscription, 100 yuan will be increased.

5. Dividend exemption: Most money market funds always maintain the face value of 1 yuan. The income is calculated every day, and there is interest income every day. Investors enjoy compound interest, while bank deposits are only simple interest. Monthly dividends are carried forward as fund shares, and dividends are exempt from income tax.

Third, the operation suggests that the money fund is actually more like a wealth management income than an investment. It is the safest project at present.

bond funds

1. Bond funds, also known as bond funds, refer to funds that invest in bonds. By pooling the funds of many investors, they make portfolio investments in bonds and seek relatively stable returns. According to the classification standard of China Securities Regulatory Commission, bond funds refer to funds with more than 80% of fund assets invested in bonds. Bond funds can also put a small amount of money into the stock market. In addition, investing in convertible bonds and issuing new shares are also important channels for bond funds to obtain income.

Second, the characteristics and advantages

1. Ordinary investors can easily participate in investment in products such as inter-bank bonds, corporate bonds and convertible bonds. These products have various inconvenient restrictions on small funds, and buying bond funds can break through this restriction.

2. When the stock market is depressed, the income of bond funds is still very stable and is not affected by market fluctuations. Because the product income invested by bond funds is very stable, the corresponding fund income is also very stable. Of course, this also determines that its income is subject to the interest rate of bonds and will not be too high. The annual interest rate of corporate bonds is around 4.5%, and the annual rate of return can be guaranteed to be between 3.3% and 3.5% after deducting the operating expenses of the fund.

3, only in the case of long-term holding, can we get relatively satisfactory returns.

4. When the stock market skyrocketed, the income remained stable at the average level, which was lower than that of equity funds. When the bond market fluctuates, there is even the risk of loss.

Third, the operation suggestion

Bond funds are basically long-term investments and are not suitable for short-term investors. At the same time, we should also have a sense of risk and check the investment targets regularly.

Stock fund

1. Equity funds, also known as equity funds, refer to funds that invest in the stock market. There are many kinds of securities funds. At present, in addition to stock funds, there are also bond funds, stock-bond mixed funds and money market funds in China.

Second, the characteristics and advantages

1. Compared with other funds, equity funds have diversified investment targets and purposes.

2. Compared with investors' direct investment in the stock market, the risks of equity funds are scattered. Low cost and the like. For ordinary investors, individual capital is limited after all, and it is difficult to reduce investment risks by diversifying investment types. However, if you invest in stock funds, investors can not only share the benefits of all kinds of stocks, but also spread the risks among all kinds of stocks by investing in stock funds, which greatly reduces the investment risks. In addition, investors who invest in stock funds can also enjoy the relative advantages of large-scale investment in funds, reduce investment costs, improve investment returns, and obtain benefits of scale.

3. From the perspective of asset liquidity, equity funds have the characteristics of strong liquidity and high liquidity. Equity funds invest in stocks with excellent liquidity, with high asset quality and easy realization.

4. For investors, equity funds operate stably and earn considerable profits. Generally speaking, the risk of stock funds is lower than that of stock investment. So the income is relatively stable. Not only that, after the closed-end stock fund is listed, investors can also obtain the bid-ask spread by trading on the exchange. After maturity, investors have the right to distribute the remaining assets.

5. Equity funds also have the function and characteristics of financing in the international market. As far as the stock market is concerned, the degree of internationalization of its capital is lower than that of foreign exchange market and bond market. Generally speaking, the stocks of all countries are basically traded in their own markets, and stock investors can only invest in stocks listed in their own countries or stocks listed in a few foreign companies. In foreign countries, stock funds have broken through this restriction, and investors can invest in the stock markets of other countries or regions by purchasing stock funds, which has played a positive role in promoting the internationalization of the securities market. Judging from the current situation of overseas stock markets, a large part of the investment objects of equity funds are foreign company stocks.

Third, the operation suggestion

For investors who have time and experience in stock trading, the risk of stock funds is no less than their own investment in the stock market. So, if possible, suggest stocks or buy closed-end funds.