BankFinancial managementIt is a capital investment and management plan designed and sold by a commercial bank based on the analysis of potential target customer groups for a specific target customer group. What we generally call "Bank wealth management products"In fact, it refers to integrated financial services in the personal business of banks."
in the bankFinancial productIn the middle, the bank only accepts the customer's authorized management funds, and the investment income and risk are borne by the customer or the customer and the bank in accordance with the agreed method.
Bank wealth management products are classified into the following categories:
According to the type of expected income, it is divided into fixed income products and floating income products;
According to the currency, different wealth management products include RMB wealth management products and foreign currency wealth management products;
According to different investment banking fields, there are different investment fields. According to this, wealth management products can be roughly divided into bond type, trust type, hook type and QD.
Type II product
Bank wealth management products have the following components:
That is, the seller of wealth management products is currently a financial institution that develops wealth management products. Investors should generally pay attention to the strength of the issuer's R&D and investment management. Financial products issued by powerful financial institutions are more reliable. In addition, some investment channels are eligible to be restricted. Small financial institutions may not be eligible to participate in these investments, which will limit the investment direction of the issuer and ultimately affect the profitability of wealth management products. Therefore, the strength of the institutions Credit is more reliable.
It is also the investor of bank wealth management products. Some wealth management products are not for all publics, but for targeted subscription groups.
A time limit will be set at the time of the issuance of any wealth management product. At present, most of the wealth management products issued by banks are relatively short, but some foreign banks have introduced wealth management products with a term of 5 to 6 years. Therefore, investors should be clear about the adequacy of their funds and the possible liquidity needs during the investment period to avoid the inconvenience caused.
When investing in long-term wealth management products, investors also need to pay attention to macroeconomic trends, and have a general judgment on interest rates and other indicators to avoid losses caused by fluctuations in interest rates or difficulties in liquidity.
4. Price and income
Price is a core element of financial products. The purpose of the fundraiser's sale of financial products is to obtain income equivalent to the price of the product. The investor's investment amount is exactly equal to the price of the financial product it purchases.
For wealth management products, the price is the relevant subscription, management and other expenses and the opportunity cost of the investment (may be interest income or other investment income).
The purpose of an investor investing in the product is to obtain a return equal to or higher than the price.
The rate of return represents the percentage of revenue that the product brings to the investor as a percentage of the investment. It is the rate of return calculated after the end of the investment management period, in accordance with the original terms of the product.
In an effective financial market, risks and benefits are always equal, and it is only possible to obtain corresponding benefits if they bear the corresponding risks. In actual operation, financial markets are not always effective or not always effective.
Due to the existence of information asymmetry and other factors, there may be low-risk, high-yield, high-risk and low-income in the market. Therefore, investors should have a detailed understanding of the risk structure of wealth management products, so as to judge and evaluate them to see if they match the income.
Liquidity refers to the liquidity of assets, which is a contradiction with the rate of return, which is why some economists define interest as “liquidity price”.
Under the same conditions, the better the liquidity, the lower the rate of return, so investors need to make a trade-off between the two.
7. Other rights nested in wealth management products
Currently introduced financial products, especially some structured wealth management products, often embed financial derivatives such as options. For example, an investor may redeem the terms in advance, and early redemption is a right (though not necessarily the best option); the bank's premature termination power is a clause that benefits the bank.
Therefore, when investors choose wealth management products, they should fully explore the information and make full use of their rights.