If the annualized rate of return exceeds 10%, the principal will not be completely lost. It just means that if you want to invest in wealth management products with annualized rate of return exceeding 10%, you need to be prepared to lose all the principal. 10% is actually a dividing line. Like many wealth management products, its annualized rate of return is less than 10%. For example, the interest rate of bank time deposits may be around 3%~5% a year. The annual yield of money funds and bond funds is about 2%~8%. If this wealth management product wants to break through 10%, it will inevitably be accompanied by an increase in risk. For example, funds and stocks, these two investment methods are that the annualized rate of return can exceed 10%, and the annualized rate of return of funds is about 15%~25%. Of course, this market is different every year, and the annualized rate of return will be different. In other words, if you invest in this wealth management product, there will be a risk of loss. It is worth noting that investment itself is risky, whether it is investing in stocks or investment funds, there are medium and high risks. If you want a project that can make money steadily, it is more appropriate to invest in low-risk wealth management products. However, if you want to invest more than 10% annually, you can only take this risk.

There are many such wealth management products on the market now, but there is basically not much room for such growth, which will not exceed 10% annualized. Moreover, there are still many wealth management products on the market that deceive people under this guise, so we still need to be cautious. The annualized rate of return above 10% is relatively high. Generally speaking, even a bank interest deposit that has been deposited for five years may only give 5% interest every year. However, investment and wealth management products with annualized rate exceeding 10% are bound to have risks. Risk and income have always been linked, so it is impossible to have such a low-risk and high-yield financial product.

Therefore, investing in wealth management products with annualized rate of return of more than 10% will not lose all the principal, only that it is possible to lose all the principal. In real life, such a situation is rare, unless it happens when buying stocks. When buying a fund, it will basically not happen, but it also depends on the personal investment style and specific investment operation.