What does it mean that wealth management products are broken?
The net loss of wealth management products means that the net value of wealth management products is less than 1 yuan. Give a simple example: suppose an investor buys a bank wealth management product, as long as the net value of this wealth management product is less than 1 yuan, then it is broken, that is, it will lose money.
If the net value of wealth management products purchased by investors is above 1 yuan, then there is no loss, and it is a situation of making money. When buying wealth management, everyone should pay attention to the risks of wealth management, because it is possible to lose money in wealth management, and financial losses are relatively normal.
What are the reasons for the failure of wealth management products?
There are many reasons why wealth management products are broken. For example, when the bond market is not good, wealth management products may break the net, because most of the bank wealth management products are low-risk assets such as deposits or bonds, but a small amount of funds are invested in equity assets with slightly higher risks.
For example, when the bond market is not good, the net value of the bond fund is calculated according to the bond price. If bond prices fall, so will bond funds. When bond funds fall on a large scale, and bank wealth management is an investment bond, then bank wealth management products will also fall, that is, the principal loss.
Then, if the wealth management product is broken and keeps falling, investors can redeem the stop loss, because the wealth management product itself carries risks, so the loss situation is more common. When managing money, investors should know their ability to take risks, and then analyze the historical data of past market exits of wealth management products and the net value of wealth management products held to make judgments.
Short-term fluctuations do not mean permanent losses. If the financial management starts to rise after the withdrawal, the lost money can be earned back. But if the loss is relatively large, it is actually more difficult to earn it back. For example, if the loss is 10%, it will take11.1%to rise back. Because the formula of how much can be recovered by fixed increase is: fixed increase recovery range =1(1-loss range)-1, that is to say, when investors lose 10%, fixed increase recovery range =1(1-)