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What does financial grade R mean?
The risk grade R in wealth management products represents the security risk calculation function. From 1 to 5, the risk gradually increases.

According to the risk status of investment and wealth management and basic assets, banks generally classify wealth management products into five grades: R 1, R2, R3, R4 and R5.

For R 1 (low risk) products, the principal is almost unaffected, and the income may fluctuate to some extent.

R2 (medium and low risk) products have relatively small principal risk and relatively controllable income fluctuation.

From the R3 (medium risk) level, the principal and income of the product may be lost.

R4 (medium and high risk) and R5 (high risk) are more likely to lose money.

Extended data

Risk disclosure

1, yield

For example, whether the rate of return in advertising is annual rate of return or cumulative rate of return; Whether the product is subject to tax withholding, and whether the rate of return in the advertisement is pre-tax rate of return or actual rate of return.

2. Investment direction

Which market will the funds raised by RMB wealth management products be put into, and the specific wealth management products to be invested, all of which determine the size of the products' own risks and whether the rate of return can be realized.

3. Asset liquidity

Most products have low liquidity, so customers can't terminate the contract in advance. A few products can be terminated or pledged, but the handling fee or interest on pledged loans is higher.

4. Hook expectations

If it is a linked product, we should analyze the performance of the linked market or product, and whether the linked direction and range meet the market expectations and whether it is possible to achieve it.