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What are the risks of bank wealth management products?

Edit: Financial 360 finishing Source: Fusion 360 Date: 2014-03-24

Summary:

There is a positive correlation between the income and risk of the bank's wealth management products, and there is no absolute risk-free bank wealth management product. So, what are the risks to buying bank wealth management products? Presumably, this is an issue that investors particularly want to understand when purchasing bank wealth management products.
 
 
  Bank financial productsThe positive correlation between income and risk, there is no absolute risk-free bankFinancial product. Then, buy a bankFinancial managementWhat are the risks to the product? Presumably, this is an issue that investors particularly want to understand when purchasing bank wealth management products.

The related risks of bank wealth management products mainly include:

  No.1Market risk: The funds raised by the bank's wealth management products are invested by the commercial banks in the relevant financial markets. The fluctuation of the financial market will affect the principal and income of the wealth management products. The factors that cause price fluctuations in the financial market are complex, and price fluctuations are large. The wealth management products purchased by investors are also subject to large market risks.

No.2credit risk: If the investment in wealth management products is related to the credit of a certain company or organization, such as the purchase of bond issued by the enterprise, investment company trust loans, etc., the wealth management products need to bear the corresponding credit risk of the company, if the company is in default, bankruptcy, etc. Investment in financial products will suffer losses.

No.3Liquidity risk: Certain financial products have a long term. During the existence of financial products, investors may face the risk of premature redemption of wealth management funds when they urgently use funds. It should be noted that cash management products have huge redemption terms and restrictions. Once a customer has a centralized redemption ratio, banks have the right to refuse or postpone processing.

No.4Inflation risk: Because wealth management product revenue is paid in the form of currency, during the inflation period, the purchasing power of the currency declines, and the actual income after the maturity of the wealth management product declines, which will cause losses to the wealth management product investors. It is related to the degree of inflation during the investment period.

  No.5Policy risk: Affected by financial regulatory policies and regulations and policies relating to the financial market, investments, repayments, etc. of financial products may not be carried out normally. This will lead to a decrease in the income of wealth management products and even a loss of the principal of wealth management products.

No.6Operational management risk: The bank is the trustee of wealth management products. Its management and disposition of funds for wealth management products, and whether it is diligent in performing its duties, directly affect the realization of wealth management income from investment in wealth management products.

  No.7Force majeure risk: The emergence of force majeure factors such as natural disasters and wars will seriously affect the normal operation of the financial market, may affect the normal conduct of financial product acceptance, investment, repayment, etc., and may even lead to a decrease in the income of wealth management products and even the loss of principal funds.

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