What's the difference between structured deposits and funds?
Difference 1: structured deposits are guaranteed, and funds are not guaranteed.
Structural deposit principal 100% is safe, capital preservation, no loss, and capital is not capital preservation. According to the different investment targets, funds can generally be divided into: money funds, bond funds, mixed funds, index funds, QDII funds and so on. Risks and benefits will be different, and money funds have the least risk.
Difference 2: The issuer is different.
Structured deposits are issued by banks, mainly by adding financial derivatives on the basis of deposits, and obtaining higher returns by linking interest rates, exchange rates and indexes. , which belongs to the principal-guaranteed product, and the fund is issued by the fund company, which belongs to the floating rate product, and mainly invests in money markets, bonds, stocks and other products, and does not protect the principal and interest.
Is structured deposit better or fund better?
It depends on the needs of investors. If the principal is guaranteed, then structured deposits are good, because structured deposits are guaranteed. If you want to pursue returns and take certain risks, it is better to invest in foundations. However, it should be noted that some funds have higher risks. For example, stock funds may lose their principal if they invest badly.