How much do you know about the risks of Yu’E Bao?

1. What exactly is Yu’e Bao?

Many friends who are not familiar with finance are not very clear about what Yu'e Bao is. Brother Han has a saying that many of his friends talk about: I deposit Yu'e Bao as soon as I get paid.

Wait, here comes the question, can I use Yu’e Bao to deposit?

Yu'ebao is actually just a vest designed by Alibaba for everyone to understand easily. The essence of this vest is a currency fund. The company controlled by Yu'ebao is Tianhong Fund, a famous Chinese fund company controlled by Alibaba.

However, everyone needs to understand clearly that this is a fund company, not a bank, so we use professional financial terms to say that what you buy is the currency fund shares of Tianhong Fund, not the deposit bank.

At one point, there is a fundamental difference between funds and banks.

As an important financial institution in the country, banks have a clear deposit insurance system. As long as they are deposited into the bank, according to relevant policies, even if a commercial bank goes bankrupt, the state will pay out a maximum of 500,000 yuan. However, the fund

Financial management products do not have this treatment. Once risks arise, the worst result is that nothing will be left, and nothing will be left.

2. What are the risks of money funds?

We have just made it clear above that the product of Yu'E Bao Baby Fund is essentially a currency fund. Purchasing Yu'E Bao is actually a subscription for fund shares. What we receive is not interest. In essence, it belongs to the fund.

Dividends.

Since it is a fund, since the fund income is so much higher than that of bank demand deposits, there must be risks.

Next, let’s talk about what are the risks of Yu’e Bao?

One is the concentration of redemption risks.

Carefully analyze Tianhong Fund's layout of Yu'e Bao. The products invested by Yu'e Bao are mostly treasury bonds, bank deposit certificates and a small number of financial bonds with less risk. The characteristics of these targets are that they are not risky, but problems still exist. This is the balance

Bao is actually a combination of two types of products, that is, a normal currency fund whose trading time is at least T+1 or even T+3. What do these mean?

I withdraw my Yu'e Bao today. Normally, it would take the next day or even three days to arrive in my account. But now we can receive it in real time. Why?

This is because Alipay and Tianhong Fund have superimposed an advance payment mechanism behind Yu'e Bao, which means that Alipay will advance the money to consumers first, which will only arrive the next day.

Therefore, once a large-scale cash withdrawal event occurs, problems will arise in this advance payment mechanism. In serious cases, it may cause the fund's capital chain to break, thus putting the buyer's principal at risk.

The second is the risk of earnings decline.

From the development of Yu’e Bao, we can find that when Yu’e Bao was first launched, it encountered a severe “money shortage”. When the banking industry experienced serious financial constraints, the profit level of Yu’e Bao was as high as 6%. This has also become

Yu'e Bao has achieved the highest level of income so far, but as the liquidity of commercial banks gradually becomes stronger, Yu'e Bao's high returns will be difficult to continue.

Therefore, we saw last year that Le Yu’e Bao’s lowest return level was only 2%.

Moreover, the investment targets of Yu'e Bao are mostly some financial products of commercial banks. This single investment structure also creates a problem for Yu'e Bao. For example, once China has a large-scale financial crisis like the one that occurred in the United States in 2008,

In the event of bank bankruptcy, Yu'e Bao is very likely to not only suffer a decline in income, but also a loss of principal. Therefore, Yu'e Bao is not a product that can completely protect the principal.

The third is the risk of financial telecommunications fraud.

Financial fraud occurred frequently in China last year. When such financial fraud occurred, Internet financial institutions were the first to bear the brunt. Because there are no physical cards, the risk control level of Internet financial institutions also has certain shortcomings. If

Users have not purchased account security insurance. Once their accounts are stolen, Yu'E Bao will immediately become the hardest hit area. Brother Han once had a friend whose account was stolen and all Yu'E Bao money was taken away by criminals. In the end, thanks to

I purchased account security insurance and managed to recover my losses, but I never dared to use Internet financial tools again.

Of course, as a rational person, Brother Han believes that we don’t need to be afraid of being bitten by a snake for ten years, but we must also prepare necessary account insurance measures.

3. How should we manage our finances? Since Brother Han has talked about a lot of risks of Yu’e Bao, and Brother Han is not a swindler who blackmails Yu’e Bao, let’s talk fairly and objectively about how we should manage our finances?

We must make it clear that Yu'e Bao funds are actually intermediate products that are riskier than bank deposits but less risky than stocks and equity funds. Therefore, buying such products is relatively safe, because unless there is a large-scale

Risk events, otherwise there will generally not be much of a problem.

But from a strategic point of view, it is also a problem if a large amount of money is used to purchase Yu'e Bao.

Next, Brother Han will talk about how to avoid risks from a conservative investment perspective. If you can accept high risks and high returns, then just go out and turn left to buy stocks.