Many investors believe that wealth management products will not lose money. In fact, wealth management products may also lose money. So what is the loss of bank wealth management products? Will the loss of principal of bank wealth management products be compensated? Below we have prepared relevant contents for your reference.

What are the reasons for the loss of bank wealth management products?

The income of financial management is determined by the investment target of financial management. If the investment target of financial management rises, there will be gains, while if the investment target of financial management falls, there will be losses. The investment targets of financial management include time deposits, bonds, commodities, stocks, foreign exchange, options and futures. And with the improvement of products, the investment scope will be larger and larger.

For example, in a wealth management product, 80% of its assets are invested in time deposits, government bonds and other products, and 20% of its assets are invested in bonds or stocks. The prices of bonds and stocks fluctuate in real time, which means that these 20% assets will lose money. When the market is bad, bonds and stocks will fall, so wealth management products will also fall.

If an investor buys a net wealth management, the net value at the time of purchase is 1. 1, and the net value after holding 100 is 1.08, then the investor will lose 0.02 yuan for each wealth management, and at this time, the investor will suffer losses.

Will the loss of principal of bank wealth management products be compensated?

The bank's financial loss and principal will not be compensated. When investors buy wealth management, the wealth management contract clearly indicates risks and does not guarantee the safety of the principal, and the bank staff will also inform users of the investment risks.

At present, financial management is divided into five risk levels according to the investment target. The risk from small to large is R 1-R5, R 1 belongs to low risk, R2 belongs to low risk, R3 belongs to low risk, R4 belongs to high risk, and R5 belongs to high risk. The lower the risk level, the lower the probability of loss, and investors can choose suitable products according to their own affordability.

Investors can also buy and sell bank wealth management products in combination with the investment in wealth management products, that is, when wealth management funds invest in high-risk industries, such as options and stocks, investors can buy less. On the contrary, when the wealth management funds are invested in low-risk industries, such as money market instruments and bond market instruments, more allocation can be considered.