What's the difference between Public Offering of Fund and bank financing?
1 The fundraising ability of products is different.
Public Offering of Fund's fund-raising ability is stronger, and it is less difficult to issue explosions than bank financing. At present, after the net transformation of bank financing, investors' acceptance is less than expected, and because of the small scale of a single product, the number of products has surged, which has brought great pressure to the investment, operation and risk control of banks and wealth management companies.
2 The product structure is different.
Public Offering of Fund has a natural advantage in equity investment, accounting for nearly a quarter, while the advantage of bank wealth management lies in fixed income assets, and there is a lot of room to expand into the equity market.
In addition, from the perspective of investor structure, the proportion of individual investors and institutional investors in Public Offering of Fund accounts for 50% respectively, while more than 80% of bank wealth management funds come from individual investors.
3 product operation is different.
Public Offering of Fund is not as stable as bank financing. In the face of a bull market or a bear market, bank financing may not be as big as that in Public Offering of Fund, but it can ensure the safety of funds to the greatest extent when the market goes down, which is more stable and safer than that in Public Offering of Fund.
In a word, Public Offering of Fund and bank financing have their own advantages and disadvantages, so investors should be cautious when choosing the most suitable financial products.