When the share of a fund product remains unchanged, the higher the net value, the better the business situation and the more suitable it is for investment.
Generally speaking, investors cannot completely use the net value of the fund as the basis for investment. A fund with a high net value represents a high management level of the fund manager. A low net value of the fund means that the cost of investing in the fund is low. It may be possible in the future. The room for profit is higher. The focus of fund selection is to observe its fund operating conditions, past performance, fund manager management level and other factors. When the share of a fund product remains unchanged, the higher the net value, the better the operating conditions and the more suitable it is for investment.
1. Definition: Wealth management products are products designed and issued by commercial banks and formal financial institutions. The funds raised are invested in relevant financial markets and purchased related financial products according to the product contract to obtain investment. A type of product that is distributed to investors according to the contract after the income is earned. The China Banking and Insurance Regulatory Commission issued the "Interim Measures for the Sales Management of Wealth Management Products by Wealth Management Companies" to strengthen the management of the sales process of wealth management products and clarify a number of prohibited behaviors in the sales process of wealth management products to effectively protect the legitimate rights and interests of investors. The measures will come into effect on June 27, 2021.
2. Classification: Bank RMB financial products can be roughly divided into bond type, trust type, linked type and QDII type.
1. Bond type, investing in the money market. The products invested are generally central bank bills and corporate short-term financing bonds. Because central bank bills and corporate short-term financing bills cannot be directly invested by individuals, this type of RMB financial products actually provides customers with the opportunity to share the income from money market investments.
2. Trust type, which invests in trust products guaranteed or repurchased by commercial banks or other financial institutions with higher credit ratings, and also invests in trust products for the beneficial rights of commercial banks’ high-quality credit assets.
3. Linked type, the final yield of the product is linked to the performance of the relevant market or product, such as linked to the exchange rate, linked to interest rates, linked to international gold prices, linked to international crude oil prices, linked to Dow Jones Index and linked to Hong Kong stocks, etc.
4. QDII type. The so-called QDII refers to a qualified domestic investment institution that provides overseas financial management on behalf of clients. It refers to a commercial bank that has obtained the qualification for overseas financial management business on behalf of clients. QDII-type RMB financial products, to put it simply, mean that customers entrust their RMB funds to qualified commercial banks, and the qualified commercial banks will convert the RMB funds into U.S. dollars and directly invest overseas. After maturity, the U.S. dollar income and principal will be settled into Wealth management products allocated to customers after RMB.
3. Purchase channels: Financial products can generally be purchased through commercial banks or non-bank financial institutions. Traditional channels include: banks, insurance companies, securities companies, futures companies, and fund companies. Emerging channels include: third-party financial management institutions and comprehensive financial management service institutions.