BanksFinancial managementIt is the capital investment and management plan that commercial banks develop, design and sell for a specific target customer base based on the analysis of potential target customer groups. We generally say "Bank financial products"In fact, it refers to the integrated financial services in the bank's personal business."
in the bankFinancial productIn China, 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 the agreed manner.
Bank wealth management products are classified in the following ways:
According to the type of expected income, it is divided into fixed income product and floating income product.
According to currency types, financial products include RMB wealth management products and foreign currency wealth management products.
According to the different investment areas of the bank's wealth management products, there are different investment areas. According to this, the wealth management products can be roughly divided into bonds, trusts, hooks, and QDs.
Type II products
Bank financial products have the following components:
That is, the seller of financial products is currently the financial institution that develops wealth management products. Investors should generally pay attention to the issuer's R&D and investment management capabilities. Financial products issued by powerful financial institutions are more reliable. In addition, some investment channels are eligible for restrictions. Small financial institutions may not be eligible to participate in these investments. This will impose restrictions on the issuer's investment direction and ultimately affect the yield of wealth management products. Therefore, the strength of the institutions Credit is more reliable.
That is, the investors of bank wealth management products. Some wealth management products are not for all the public but for the targeted subscription groups.
Any time a financial product is issued, it will specify a time limit. At present, most of the financial products issued by banks are relatively short, but there are also foreign banks that have launched financial 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 must also pay attention to the macroeconomic trends and have a general judgment on the interest rates and other indicators, and avoid losses caused by fluctuations such as interest rates or difficulties in liquidity.
4. Prices and benefits
Price is the core element of financial products. The purpose of a fundraiser selling a financial product is to obtain income equivalent to the price of the product, and the investment amount of the investor is exactly equal to the price of the financial product it purchases.
For wealth management products, the price is related to the subscription, management and other costs as well as the opportunity cost of the investment (which may be interest income or other investment income).
The purpose of an investor's investment in the product is to obtain a gain equal to or higher than that price.
The rate of return represents the percentage of the investment that the product brings to investors. It is the rate of return calculated according to the original terms of the product after the end of the investment management period.
In an effective financial market, risks and benefits are always equal, and only by taking corresponding risks can it be possible to obtain corresponding benefits. In actual operation, financial markets are not always effective or are not always valid.
Due to factors such as information asymmetry, there may be low-risk high-yield, high-risk and low-yield markets. Therefore, investors should understand the risk structure of wealth management products in detail so that they can make judgments and assessments to see if they match the income they receive.
Liquidity refers to the liquidity of assets. It is a contradiction to the rate of return, which is why some economists define interest as the “liquidity price”.
Under the same conditions, the better the liquidity and the lower the rate of return, investors need to make a trade-off between the two.
7. Nested other rights in financial products
Currently launched financial products, especially some structured financial products, often embed financial derivatives such as options. For example, investors can redeem terms in advance. Redemption is a right (although not necessarily the best option); early termination of the bank's power is in favor of the bank's terms.
Therefore, when investors choose wealth management products, they should fully explore the information and fully use the rights in this area.