1, which is both profitable and liquid. Compared with traditional wealth management products, Yu 'ebao products "have higher interest rate than deposits and are more convenient than funds", providing users with a new wealth management tool with good performance in profitability and liquidity.
2, the operation process is simple, and the use is convenient and quick. Yu 'ebao products, the fund direct selling system of fund companies is built into Alipay website, and users can purchase or redeem funds in Alipay. The whole process is as simple as Alipay recharging, cash withdrawal or shopping.
3. The investment threshold is low, attracting the participation of the whole people. Yu 'ebao products do not limit the minimum purchase amount of users, which is conducive to concentrating all fragmentary and idle funds in society to the maximum extent, improving the utilization rate of social funds, and at the same time allowing customers to enjoy the most convenient financial services.
Disadvantages of Yu 'ebao:
1, information asymmetry, or further lead to moral hazard. Most users of payment institutions don't know the knowledge and information of financial market, but passively accept the "cooperative unit" selected by payment institutions, and know almost nothing about the capital operation of the "cooperative unit".
2. The propaganda is misleading and the risk warning is insufficient.
Article 43 of the Measures for the Administration of Sales of Securities Investment Funds stipulates that "when introducing money market funds in fund promotion materials, fund investors should be reminded that buying money market funds does not mean depositing funds as deposits in banks or deposit-taking financial institutions, and fund managers do not guarantee that the funds will be profitable or guarantee the minimum income."
3. There are security risks. Through news reports, we know that in recent years, cases of the theft of Yu 'ebao products have occurred frequently. Although the publicity page of Yu 'ebao claims that "the stolen funds will be paid in full", in practice, customers may face the problem of proof.