Fund is an asset management plan developed, designed and sold by fund companies. Mainly invest in stocks, bonds and other assets, the purpose is to obtain excess returns, and the benefits and risks are borne by customers.
The difference between bank wealth management products and funds lies in:
1. Different service providers: the wealth management products of banks are provided by banks, and the services of funds are provided by fund companies.
2. Different regulators: the regulator of banks is CBRC, and the regulator of fund companies is CSRC. Fund assets need to be managed in a bank with custody qualification, and the establishment and operation of its accounts are strictly independent of the fund manager and custodian.
3. Different purchase thresholds: Generally, the purchase threshold of self-financing products of banks is relatively high, generally above 1 1,000 yuan, and it is more common to buy products starting from 1 1,000,500 yuan or 1 1,000,000 yuan. The purchase threshold of funds is relatively low. Generally, Public Offering of Fund products are purchased from 1 yuan or 10 yuan, but also from 100 yuan or 1000 yuan.
4. Different expenses: The expenses of the fund generally consist of subscription fee/subscription fee, sales service fee, redemption fee, management fee and custody fee. In addition to closed-end financing, early redemption of bank financing will incur costs, and generally no redemption fee will be charged. There are several other fees for bank financing, but usually the rate will be lower than the fund.
5. Different security
Fund assets need to be managed in a bank with custody qualification, and the establishment and operation of its account are strictly independent of the fund manager and custodian; At the same time, the CSRC has specially issued regulations on the management of money market funds, which have strict requirements on the information disclosure of funds. However, there is less disclosure of the bank's wealth management funds.
6. Different liquidity
Funds can purchase and redeem flexibly on the open day, and will not change because of the net value of fund purchase and redemption; Some wealth management products can be bought and sold at any time to earn the difference, such as stock foreign exchange; Others need to be bought and sold within the time limit, and generally cannot be redeemed.