Risk-insufficient risk warning
At present, the Internet financial products represented by "Bao Yue" are mainly money funds. However, in the overwhelming publicity, Internet companies did not give enough risk warnings and unilaterally emphasized safety and profitability. Although the risk of money fund is small, the fluctuation of interest rate in money market will still affect the rate of return. At the same time, Internet wealth management products generally adopt the "T+0" model, and there is liquidity risk brought by centralized redemption.
Risk 2 illegal promotion, disorderly competition
In order to attract attention, some Internet companies even "subsidize" themselves. The Measures for the Administration of Sales of Securities Investment Funds clearly stipulates that fund sales institutions shall not engage in fund sales activities, and shall not "sell funds by lottery, kickback or giving away in kind, insurance or fund shares". The rate of return advertised by some money funds only represents historical performance. Investors need to understand that the income of the money fund is closely related to the interest rate trend in the money market, which is volatile and cannot be based on historical performance.
Risk 3 Risk protection is not reliable.
Most Internet wealth management products are advertised as being fully underwritten by insurance companies. Baidu Baifa claims that "the guarantee is provided by China Investment and Financing Guarantee Co., Ltd.". However, investors should still pay attention to the security of accounts. It is not uncommon for funds to be lost due to the loss of accounts, and it is still necessary to be cautious when investing large amounts of funds.