first, the characteristics of trust products

1. The starting point is high, basically 3 million, and each project has 5 places of 1 million (commonly known as small amount). The high investment threshold excludes ordinary investors. Therefore, trust business is also called private bank. The investment threshold of trust has the voice of continuous improvement. Why should we set a high threshold? The usual explanation is that trust investors need to have certain risk identification ability and risk tolerance ability. For example, in the United States, it is stipulated that only people who need 5 million dollars can participate in trust investment.

2. Low risk. Trust projects are subject to due diligence, objective and fair information disclosure, clear and clear risk management methods, and can only be issued after approval by the China Banking Regulatory Commission. The operation of trust projects needs to be bound by the Trust Law, so the overall risk is relatively low. Since the establishment of the Trust Law in 21, trust investors have been able to reap the principal and interest as agreed.

3. The income is higher. In previous years, when the economic situation was good, trust investors could basically reap more than 1% annualized income. Even when the global economy was generally depressed this year, the average annualized income of trust products was about 9%. In the three years from 29 to 211, trust investors gained 24 billion yuan, 75.5% of them earned more than 9% annualized income, 62% of investors earned 9-12% annualized income, and many real economies earned less than 9% annualized income.

4. Continuous investment is convenient and concise. Getting back the principal and income at maturity can form a continuous investment and make the income compound interest. According to 9% compound interest, 3 million starts, 4 years is 1 million, and 15 years is 1 trillion.

5. debt isolation function. The trust property is protected by law. Once the trust is established, the trust property is separated from the property of the trustor, trustee and beneficiary, and becomes independent property. Trust property cannot be liquidated, repaid or bankrupt. This is a great advantage of trust products.

6. Poor liquidity. Trust products cannot be redeemed separately before their expiration, but they can be transferred to other investors. Most trust products have a term of 1-2 years. In order to meet the demand of high liquidity of idle funds, Zhongrong Trust and Ping An Trust have set up short-term trust products with a term of 3, 4, 6, 9, 12 months, etc., and more than 1 million large funds can be customized with a more flexible term.

7. Flexible investment methods. Trust can span the three fields of currency, capital and industrial market, and can operate flexibly in various forms such as equity and loan, which is unmatched by other financial institutions. The advantage of trust system is also one of the important reasons for its rapid development in recent years. In order to obtain funds more quickly, many project parties are also willing to take the trust channel financing at a higher cost.

second, bank wealth management products VS trust products

1. The investment threshold is low, generally 5,, and bank wealth management belongs to public wealth management. Subscription is convenient, and even online orders can be placed directly.

2. Good security and low income. Bank wealth management products have high security, but the low rate of return is its weakness. If the product description has the word capital preservation, the yield is about 3%; Without the word capital preservation, the yield rarely reaches 5%. It is difficult for bank wealth management products to catch up with inflation. There are roughly two reasons. First, the capital threshold is low, and the bargaining power is lost, and the excess income usually belongs to the bank; Secondly, the operating costs of banks are relatively high, and there is one in 2 meters. It is still a street shop, and the rental cost and labor cost are not low, which definitely needs high profit support.

3. Strong liquidity. Few bank wealth management products have a term of 1-2 years, which is basically about 3 days or 3 months. The term is very flexible and it is convenient to subscribe at any time.

4. There are many bank outlets, and they know the detailed information of customers, so they have a high degree of trust in the hearts of ordinary people, which is the biggest advantage of banks. Cooperation with banks has high advantages, and insurance, securities, trusts, funds and investment companies are also willing to cooperate with banks. Therefore, when banks choose wealth management products, they should distinguish between their own wealth management products and those of other financial institutions. It is necessary to know whether the contract has the official seal of the bank. If it is a product of a bank consignment agency, it is necessary to be very cautious. Sometimes the salesperson does not specify it clearly. In 21, there were 38 bank wealth management products that did not realize the income. I don't know whether it was the bank's own wealth management products or the products of other financial institutions that were sold by the bank. Recently, customers Ms. Wang and Ms. Yao, who have just been exposed, are doing wealth management in Ping An Bank (formerly Shenzhen Development Bank), and 1.8 million yuan and 5, yuan are converted into 1, yuan. The wealth management products of customers are not banks, but investment companies. Therefore, when banks buy wealth management products, they should carefully identify the institutions that produce financial products.

5. The author visited many bank branches recently, and there are few trust products. Banks seem reluctant to sell trust products publicly, probably because banks prefer big customers to make deposits or buy their wealth management. Even if trust products can be bought in banks, the yield is generally low; In addition, some of them are also products of small trust companies. Such projects are generally recommended by banks. Trust companies are just channels. Small trust companies are cheaper and banks are willing to cooperate. Because, banks need to earn a larger profit difference. The reason why banks are willing to sell on a commission basis is that they often have a higher commission. Now the commission of trust products is generally reduced, especially for the products of trust companies with better brands, banks are reluctant to sell on a commission basis.

6. A large part of the funds raised by bank wealth management products are directly invested in trust projects, which accounts for 1/3 of the trust scale. Because of the high threshold of trust investment, trust products are split into microfinance products in banks. From this, banks can make a spread of about 5%, or even higher. Intermediary business is one of the three pillars of bank profits.

3. Stocks, funds, securities products VS trust products

1. Stocks have returned to their original point in ten years, even private funds have lost money in an all-round way, and the securities market is full of sorrow. This is related to the current economic downturn and the lack of securities system in China. The securities market has become a tool for listed companies, brokers and investment institutions to circle money, and has not really created value for shareholders. The downturn in the securities market has also seriously hurt securities trust products. At present, private placement trust products have suffered a total loss, and many securities private equity funds represented by Ping An Trust have also suffered a total loss, and many brilliant investment institutions and star fund managers have been eclipsed. China stock market needs to rebuild its image and financial confidence, and there is still a long way to go.

2. Some sensitive speculators withdraw funds from the securities market in time and transfer them to trust investment. These people are very discerning and wise investors. They not only made money in stock market speculation, but also retired in time and further preserved and increased their value in trust investment.

3. In the economic cycle, it is still possible to cooperate with large financial institutions, choose well-branded fund managers and buy securities products. First, it saves worry and effort, and watching K charts and listening to stock reviews all day will affect work and life; Secondly, fund companies or fund managers with good brands, after all, are professional, far better than us personally in terms of technology and information, and their risks are much lower. The key is the fund manager's historical performance and investment style, which can be more consistent with himself.