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What are the risks of bank wealth management products?

Edit: Rong 360 finishing Source: Rong 360 Date: 2014-03-24

Summary:

The income and risk of bank wealth management products are positively correlated, and there is no bank risk management product that is absolutely risk-free. So, what risks will be faced when purchasing bank wealth management products? Presumably this is an issue that investors particularly want to know when purchasing bank wealth management products.
 
 
  Bank wealth management productsThe return is positively related to the risk, and there is no bank that is absolutely risk free.Financial product. Then, buy a bankFinancial managementWhat are the risks that products will face? Presumably this is an issue that investors particularly want to know when purchasing bank wealth management products.

The risks associated with bank wealth management products mainly include:

  No.1Market riskThe funds raised by the bank 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 causing price volatility in financial markets are complex, and price fluctuations are large. The market risks faced by investors in purchasing wealth management products are also large.

No.2credit risk: If the investment of wealth management products is related to the credit of a certain enterprise or institution, such as buying bonds issued by enterprises, investing in corporate trust loans, etc., wealth management products need to bear the corresponding credit risk of the enterprise. If the enterprise defaults, bankruptcy, etc. Investment in wealth management products will suffer losses.

No.3Liquidity risk: Some wealth management products have a long period of time. During the period of wealth management products, investors may face the risk of not being able to redeem their wealth management funds in advance when they urgently use funds. It is important to note that cash management products have a huge redemption clause. Once the customer has redeemed a certain percentage, the bank has the right to refuse or postpone the processing.

No.4Inflation risk: Since the income of wealth management products is paid in the form of money, during the inflation period, the purchasing power of money declines, and the actual income after the expiration of wealth management products declines, which will bring losses to the wealth management products investors, the size of the loss. It is related to the degree of inflation during the investment period.

  No.5Policy risk: Due to the financial regulatory policies and the relevant laws and regulations of the wealth management market, the investment and repayment of wealth management products may not be carried out normally, which will result in the decrease of the income of wealth management products and the loss of the principal of wealth management products.

No.6Operational management riskBank is the trustee of wealth management products. It manages and disposes of the level of wealth management product funds, and whether it is diligent and diligent, directly affecting the realization of wealth management income of wealth management products investment.

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

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