Some wealth management products will stipulate in the contract to charge investors a certain excess performance reward, that is, when the wealth management products generate excess returns, the managers of the wealth management products have the right to charge additional returns, so will the wealth management products have excess returns? How is the excess return generated? In order to solve your doubts, we have prepared relevant contents for your reference.

1. Will there be excess income from wealth management products?

Wealth management products will have excess returns. Excess income refers to the part where the income of wealth management products exceeds the performance benchmark.

When wealth management products lose money, the fees that investors should pay will still be paid, while when wealth management products have excess returns, issuers will generally charge investors for excess performance rewards, and the proportion charged is generally high, and some banks can reach as high as 80%. Sometimes, after extracting the income from wealth management products, investors find that the income obtained is much less than the income shown when they hold it, and it is very likely that they have been charged with excessive performance rewards.

However, different wealth management products have different ways and proportions of collecting excess performance rewards. Some wealth management products will extract an excess performance reward once a day, while others will extract an excess performance reward when investors withdraw income, which is determined by the issuer according to the expected income of wealth management products, market conditions and other factors. Not all wealth management products will receive excess performance rewards, and the specific standards will generally be agreed in the contract of wealth management products.

Second, how is the excess return generated?

When the financial market is good, such as the bull market of stocks; Or when investors have outstanding personal investment ability and can accurately predict the market situation, investors' income may exceed the original expected income of wealth management products, that is, they have obtained excess income, but it is difficult to obtain excess income for a long time.

In the stock market, the increase of market index can be regarded as its average return. When the investor's income exceeds the increase of the market, the excess part is the excess income obtained by the investor. In the market of wealth management products such as funds, wealth management products generally give the expected rate of return, and the return of investors exceeding the expected rate of return is the excess return. In a risk-free investment market, such as the deposit market, the bank's time deposit income can be regarded as the average income, and the part where the investor's income exceeds the time deposit income is the excess income obtained by the investor.

There are few excess returns, so investors don't have to pursue them persistently. Moreover, even if the wealth management products operate well and generate excess returns, the bulk of the excess returns are basically taken away by the issuer. Therefore, investors should choose financial products within their own risk tolerance level, and do not blindly pursue high returns.