Difference:
1. Closed-end wealth management products are based on the high-yield principle adhered to by wealth management products. Generally speaking, closed-end wealth management products have relatively high returns and poor liquidity, and cannot be redeemed in advance or redeemed in advance.
2. Compared with closed-end wealth management products, open-end wealth management products have lower income, and the biggest advantage is better liquidity of funds, and they can be redeemed in advance, which is more convenient for temporary capital demand.
3. Open wealth management products are also called net worth wealth management products. Generally speaking, banks will charge management fees and redemption fees for net worth wealth management products. Some wealth management products are collected at the front end, and most wealth management products are collected at redemption. There are also some open-ended wealth management products, which stipulate that redemption fees will not be charged until the agreed time limit is reached; If it reaches the agreed time limit, it can be exchanged for free. ?
If your funds need to be used frequently, open-ended wealth management products are more suitable, because the cycle is short and you can redeem them in time when you need money. If not redeemed, open-ended wealth management products are generally purchased automatically. However, closed-end wealth management products cannot be redeemed in advance, and the cycle is long. When you need money, you can redeem it in time.
Extended data:
Wealth management products, that is, products designed and issued by commercial banks and formal financial institutions themselves, are a kind of wealth management products that invest the raised funds in relevant financial markets, purchase relevant financial products according to product contracts, and then distribute them to investors according to contracts. ? From the beginning of 2004, the styles and types of bank wealth management products, the amount of issuance and the scale of funds began to expand rapidly. In 2008, despite the slowdown in domestic economic growth and the turmoil in domestic and international financial and commodity markets, the sales of bank wealth management products still reached a record high. The scale of new funds of bank wealth management products exceeds that of insurance wealth management products, trust wealth management products, Public Offering of Fund and other wealth management products, and has become the main force to promote the development of domestic wealth management market. And maintain a high-speed growth trend in the next two years.
References:
Financial products _ Baidu Encyclopedia