(1) Market risk: The funds raised by wealth management products will be put into relevant financial markets by commercial banks, and the fluctuation of financial markets will affect the principal and income of wealth management products. The factors that cause price fluctuation in the financial market are very complicated, and the price fluctuation is large, and the financial products purchased by investors are also facing great market risks. For example, during the financial crisis in 2008, due to the sharp drop in the global capital market, most wealth management products related to the capital market suffered losses to varying degrees.
(2) Credit risk: If the investment of wealth management products is related to the credit of an enterprise or institution, such as buying bonds issued by enterprises and investing in trust loans of enterprises, the wealth management products need to bear the corresponding credit risk of the enterprise. If the enterprise defaults or goes bankrupt, the investment in wealth management products will suffer losses.
(3) Liquidity risk: Some wealth management products have a long term or are invested in financial products that are difficult to realize in time. During the existence of wealth management products, when investors are in urgent need of funds, they may face the risk of not being able to redeem wealth management funds in advance or the risk of realizing losses at unfavorable market prices. In order to reduce the impact of liquidity risk, investors can allocate assets and put some idle funds into products with high liquidity and redeemable at any time to avoid not being able to redeem the money in time. In addition, it should be noted that cash management products have huge redemption clauses. Once the centralized redemption of customers reaches a certain proportion, the bank has the right to refuse or postpone the processing.
(4) Inflation risk: As the income of wealth management products is paid in the form of money, during inflation, the purchasing power of money declines, and the actual income of wealth management products declines after they expire, which will bring losses to investors of wealth management products. The size of the loss is related to the degree of inflation during the investment period.
(V) Policy risk: Due to the influence of financial regulatory policies and laws and regulations related to wealth management market, the investment and repayment of wealth management products may not be carried out normally, resulting in the decrease of income of wealth management products or even the loss of principal of wealth management products.
(VI) Operational management risk: Banks are the trustees of wealth management products, and their level of management and disposal of wealth management products' funds, as well as whether they are diligent and conscientious, directly affect the realization of wealth management income from investment in wealth management products.
(VII) Information transmission risk: Commercial banks will release information announcements of wealth management products to investors according to the stipulations in the wealth management product specifications, such as valuation and product yield to maturity. If the investors can't know the information of wealth management products in time due to force majeure factors such as communication failure and system failure, it may affect the investment decision of investors of wealth management products, and then affect the realization of the income of wealth management products.
(VIII) Force Majeure Risk: The occurrence of force majeure factors such as natural disasters and wars will seriously affect the normal operation of the financial market, which may affect the normal acceptance, investment and repayment of wealth management products, and even lead to the reduction of income or even the loss of principal of wealth management products.
Extended data
Wealth management products, that is, products designed and issued by commercial banks and formal financial institutions themselves, are a kind of wealth management products that invest the raised funds in relevant financial markets, purchase relevant financial products according to product contracts, and then distribute them to investors according to contracts.
Risk disclosure
yield rate
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.
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.
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.
Relevance expectation
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.
The disorderly operation of wealth management products market is mainly reflected in the market segmentation and homogenization competition among financial 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.
References:
Financial products-Baidu Encyclopedia? Bank wealth management products are also risky? Know eight risks before buying-People's Network