Suppose that the return period of a wealth management product is one year and the yield is B, then the annualized interest rate is R.
r=( 1+b)^a- 1
On March 3, 20021March 3 1, the People's Bank of China issued a notice to make relevant provisions on the annualized interest rate of loan products.
Lending institutions should show the annualized interest rate to borrowers in an obvious way when marketing through websites, mobile apps, posters and other channels. Institutions engaged in loan business include, but are not limited to, deposit-taking financial institutions, auto finance companies, consumer finance companies, microfinance companies and Internet platforms that provide advertising or display platforms for loan business.
The annualized loan interest rate is calculated according to the ratio of the total loan cost charged to the borrower to the actual loan principal, and converted into annualized form. The annual loan interest rate can be calculated by compound interest or simple interest method: the compound interest calculation method is internal rate of return; If the simple interest calculation method is adopted, the simple interest shall be indicated.
Bank wealth management products are capital investment and management schemes developed, designed and sold by commercial banks for specific target customers on the basis of analysis and research on potential target customers. In the investment mode of wealth management products, banks only accept funds entrusted by customers, and the investment income and risks are borne by customers or customers and banks in an agreed way.
According to the Interim Measures for the Administration of Personal Financial Services of Commercial Banks issued by the CBRC, "Personal Financial Services" refers to "financial analysis, financial planning, investment consultation and asset management provided by commercial banks for individual customers". Personal financial services of commercial banks can be divided into financial consulting services and comprehensive financial services according to different management and business models. What we generally call "bank wealth management products" actually refers to comprehensive financial services.
risk level
According to the degree of risk
1. basically risk-free financial products
Bank deposits and national debt are guaranteed by bank credit and national credit, with the lowest risk level and low yield. Investors hold a certain proportion of bank deposits, the main purpose is to maintain moderate liquidity, meet daily needs, and wait for the opportunity to buy high-yield wealth management products.
2. Low risk financial products
It is mainly a variety of money market funds or some creditor's rights funds that invest in the interbank lending market and the bond market. Both markets have the characteristics of low risk and low return, and the professional and diversified investment of fund companies further reduces the risk.
3. Medium-risk financial products
(1) Trust wealth management products
Trust companies raise funds from investors to provide professional financial management and independent financial products, and the risks are borne by investors themselves. Investors who invest in such products should pay attention to the analysis of the investment of raised funds to ensure reliable repayment sources, adequate guarantee measures and trust in the company's own credit.
(2) Structured foreign exchange deposits
As an innovative product of financial engineering, it is usually a combination of several financial products, such as the combination of additional options for foreign exchange deposits. Such products usually have a yield range, and investors have to bear the risk of interest rate changes.
(3) Structured financial products
The product is linked to multiple stock indexes or stocks, but the bank has a break-even clause and has the opportunity to earn more income than time deposits.
4. High-risk wealth management products
Financial products such as QD fall into this category. Because of the high-risk characteristics of the market itself, investors need to have professional theoretical knowledge in order to have a deeper understanding of foreign exchange and foreign capital markets and choose financial products that suit them, rather than just regret the losses.