R 1 Wealth management products are generally guaranteed by banks to repay the principal in full, and the product income is less affected by risk factors such as market fluctuations and changes in policies and regulations. Products are mainly invested in low-risk financial products such as high-credit bonds (such as national debt) and money markets.
R2-level wealth management products do not guarantee principal repayment, but the principal risk is relatively small and the income fluctuation is relatively controllable. The products mainly invest in low-volatility financial products such as bonds and interbank deposits. Strictly control the proportion of investment in financial products with large fluctuations such as stocks, commodities and foreign exchange. Usually, the wealth management products we buy in banks are R2 level and above.
R3 wealth management products do not guarantee the repayment of the principal, and have certain principal risks, and the income fluctuates. Products can be invested in low-volatility financial products such as bonds and interbank deposits. In principle, the proportion of investment in highly volatile financial products such as stocks, commodities and foreign exchange shall not exceed 30%, and the capital preservation ratio of structured products shall be above 90%.
R4 wealth management products do not guarantee the repayment of the principal, and the principal risk is high, and the income fluctuates greatly, so the investment is easily affected by market fluctuations, changes in policies and regulations and other risk factors. The proportion of products invested in highly volatile financial products such as stocks, commodities and foreign exchange can exceed 30%.
R5 wealth management products do not guarantee the repayment of principal, and the principal risk is extremely high. At the same time, the income fluctuates greatly, and the investment is vulnerable to market fluctuations, changes in policies and regulations and other risk factors. Products can be fully invested in high-volatility financial products such as stocks, foreign exchange and commodities, and can be leveraged through derivatives trading and stratification.
Although the wealth management products sold by banks and some third-party platforms are marked with risk levels, they are not necessarily accurate. So how do we distinguish the real risk level of a wealth management product? First of all, you can look at the product issuer, which can be found under the product name. Qualified financial products must be compliant financial institutions, such as banks, securities companies and insurance companies. Secondly, looking at the investment scope of the product, we can focus on the subscription specification and portfolio specification of the product. It is very important for investors to recognize the risk level of wealth management products, because products with higher risk level may bring loss of principal. Therefore, before investing, we must keep our eyes open and carefully select qualified and suitable products.