Baby wealth management products are not only reflected in expected annualized expected returns, but also have a t+0 quick redemption function compared to other funds. Now the regulatory authorities have stated that there are certain risks. Is there really a risk in t+0 quick redemption?

What is t+0 quick redemption?

T+0 is a securities (or futures) trading system commonly used internationally.

Any trading system in which the certificate (or futures) and price clearing and delivery procedures are completed on the day the certificate (or futures) is traded is called T+0 trading.

In layman's terms, the certificates (or futures) bought on the same day can be sold on the same day.

Characteristics of t+0: 1. Trading method, two-way trading, buy up and down, buy now and sell now.

2. For short-term speculation, positions can be closed after 15 minutes of stock operation.

3. Speculative nature is enhanced and speculation opportunities increase, making it suitable for short-term speculators.

4. The increase in the number of investors' transactions and transaction fees will lead to an increase in transaction costs and thus an increase in speculative risks.

What is the t+0 quick redemption of funds advanced by a fund company?

Anyone who is familiar with the fund industry knows that if an open-end fund is applied for on the same day (T day), the expected annualized expected return is generally confirmed and calculated on the second working day (T+1), and the share is calculated on the third working day (T+2).

Arrive.

The trading mode of exchange-traded open-end funds is T+1, and the same is true for closed-end funds.

Specific to monetary funds, since they implement a T+1 liquidation system, fund shares redeemed on the same day cannot be received until at least the next day or even the third working day.

However, this situation was broken in 2012 when China Universal became the first to “eat a crab” and launched online direct sales T+0 redemption business for money funds.

In 2013, the Internet baby category appeared in conjunction with monetary funds. Taking advantage of the money shortage that year, it quickly became a hot item in the market, and its overall scale soared.

The reason why "babies" are widely loved by investors is that in addition to the expected annualized return rate that was much higher than that of ordinary fixed-income products at that time, another crucial reason is good liquidity.

This is the T+0 fast redemption service discussed today.