What is the difference between trust products and bank asset management products?

Investment asset management products are becoming more and more diversified, and trust products are popular among many investors with their strict rigid exchange system. So, what is the difference between trust products and bank asset management products?

The reserved funds raised by bank asset management products in different investment directions are generally invested in the bank's own capital pool. The bank that issues the product uses the capital pool to invest in bills, bonds, currency funds, etc. in the interbank market. The overall income of the capital pool is distributed to previously issued funds.

Various asset management products. The exchange of principal and income comes from the principal and income of the entire capital pool. There are many types of trust asset management products, and the investment directions of different products are also different, mainly including real estate, infrastructure, ownership, debt, etc.

Its principal security and expected returns are provided by collateral and third-party guarantees. The investment threshold is different. The minimum investment threshold for bank wealth management products is 50,000 yuan. The number of investors in each trust product must not exceed 200. Its investment threshold is much higher.

Most are 1 million yuan, and investment quotas below 3 million yuan are generally only 50. From the perspective of term, the term of bank financial products ranges from a few days to a few years, and trust products generally exceed one year, more than two years, and longer.

The expected annual returns of the two are also very different due to different investment risks. The current annual returns of trust products are more than 8%, and the annual returns of bank asset management products are mostly between 3% and 6%. Therefore, they are suitable for those with low risk tolerance.

Investors, the former requires investors to have a large amount of idle funds and sufficient risk tolerance. Whether it is trust products or bank financial products, investors must choose financial products that suit them and do not buy them blindly.