Net value financial products are risky. During their operation, the net value of the product is affected by many factors and will fluctuate continuously. So are net value financial products risky?

How to choose?

In order to solve your doubts, we have prepared relevant content for your reference.

1. Are net worth financial products risky?

The risk of net worth financial products is related to the risk level of the product and cannot be generalized.

Generally speaking, the risk level of net worth financial products is between R2 and R5. The higher the risk level, the greater the risk of the product.

Net value financial products are non-principal guaranteed floating income financial products.

Non-guaranteed means that the product has the risk of losing principal, and the profits and losses of the investment are borne by the investors themselves.

Although the investment targets of net value financial products are mostly money market investment products such as deposits and bonds, and the risks are smaller than equity investment products such as stocks and futures, losses will still occur when the market environment is not good.

Floating income means that the actual income of the product is unpredictable and depends on the actual operation of the product, changes in the market environment, the rise and fall of the underlying value, and other factors. The final income of the product is based on the actual net value announced on the product's opening day.

Net value financial products have a certain degree of liquidity. They are based on closed financial management and include multiple opening days. They are generally open once a week or every month.

This also reduces investors' investment risks in disguise. When investors are not optimistic about the subsequent trend of the financial product or cannot bear greater losses, they can redeem the product shares on the next opening day.

Unlike fully closed financial products, even if losses continue to occur, investors will not be able to redeem their shares and end their investment before the opening day stipulated in the contract, and they can only continue to suffer losses.

If investors cannot accept the risks of net value financial products, they can choose financial investment products with lower risks and extremely low possibility of losses, such as bond funds, treasury bonds, treasury bond reverse repurchases, etc., which are all suitable for those pursuing stable returns.

investor.

2. How to choose net worth financial products?

There are various net worth financial products on the market, and investors can compare and choose from the following three aspects: 1. The risk level of the product.

Financial products on the market are generally divided into five risk types: R1 (cautious), R2 (sound), R3 (balanced), R4 (aggressive), and R5 (aggressive), and investors are also divided into

There are five risk tolerance levels: C1 (conservative), C2 (stable), C3 (balanced), C4 (growth), and C5 (aggressive).

Before choosing a net worth financial product, investors can test their risk level first. It will be safer to choose products with a risk level or below that they can bear.

Even if there is a loss, it will still be within the tolerance of investors.

2. Product historical data.

When selecting net value financial products, investors can query their historical transactions, historical performance, historical net value changes and other data. These historical data can well reflect the product's market demand, profitability, risk resistance, etc., and can

Promote investors' in-depth understanding of products and determine whether they meet investors' current investment needs.

3. Product investment direction.

Depending on the investment direction of financial products, the asset allocation will be different, and the risks in the operation process will be different.

Investors can judge whether the financial product is safe and has high returns based on its investment direction and main position allocation.

For example, net-value financial products that mainly invest in high-credit bonds such as treasury bonds and government bonds are naturally safer and have lower returns, making them suitable for investors seeking stability.

All in all, financial management is risky and investment needs to be cautious.

Investors can choose products they like based on their own capital, risk tolerance, etc.