R2-level wealth management products have lower risks and relatively lower returns, and are more suitable for investors with lower risk tolerance.
Financial products are products designed and issued by commercial banks and formal financial institutions themselves. Put the raised funds into relevant financial markets according to the product contract and purchase relevant financial products, and then distribute them to investors according to the contract.
The China Banking Regulatory Commission issued the Interim Measures for the Management of the Sales of Wealth Management Products of Wealth Management Companies, which strengthened the management of the sales process of wealth management products, clarified a number of prohibited acts in the sales process of wealth management products, and effectively protected the legitimate rights and interests of investors. These Measures shall come into force on June 27th, 20021year. [8]
Risk disclosure:
1, yield
For example, whether the rate of return in advertising is annual rate of return or cumulative rate of return; Whether the product is subject to tax withholding, and whether the rate of return in the advertisement is pre-tax rate of return or actual rate of return.
2. Investment direction
Which market will the funds raised by RMB wealth management products be put into, and the specific wealth management products to be invested, all of which determine the size of the products' own risks and whether the rate of return can be realized.
3. Asset liquidity
Most products have low liquidity, so customers can't terminate the contract in advance. A few products can be terminated or pledged, but the handling fee or interest on pledged loans is higher.
4. Hook expectations
If it is a linked product, we should analyze the performance of the linked market or product, and whether the linked direction and range meet the market expectations and whether it is possible to achieve it.
The expected rate of return of bank wealth management products is only an estimate, not the final rate of return. Moreover, the bank's oral publicity does not represent the content of the contract, which is the most standardized agreement of wealth management products. Financial experts said that in the current weak market environment, investors need to read the product manual carefully when buying bank wealth management products, and don't expect too much from the income of wealth management products. [3]
The disorderly operation of wealth management products market is mainly manifested in market segmentation and homogeneous competition among wealth management peers. This phenomenon is related to the separate operation and supervision system of the financial industry. A large number of homogeneous products often have different styles of product descriptions and regulatory rules.