Net worth wealth management products are the most important type of bank wealth management business, that is, when the wealth management products expire, the principal and income will be returned to investors in a certain proportion according to the agreement. Now there are basically two modes, one is the net-worth products sold by banks, and the other is the net-worth products issued by banks themselves. Among them, the net worth wealth management products issued by banks themselves can be quickly realized through the purchase and redemption mechanism, while the net worth wealth management products sold by banks can only withdraw funds and deposit them in designated accounts according to regulations, and pay a certain percentage of interest. So what caused most banks to sell net worth asset management products this year? This is also a key direction in the bank's current development strategy.

Why are banks selling net worth products?

First of all, the investment direction and market environment of products. As we all know, people now invest in bank wealth management products through funds and other means. For individual investors, buying bank wealth management products is also a "buy buy buy" process, which is undoubtedly good news for investors, because in such an environment, wealth management products can not only get higher returns, but also get higher risk-return protection. Secondly, we have a cognitive process distinction for asset management products. As we all know, the reason why bank wealth management products can attract investors to buy them is mainly because it has the characteristics of guaranteed capital and guaranteed income. But in fact, in essence, net-worth wealth management products and traditional wealth management products are essentially the same, the difference is that the net value can not be determined, that is, the stability and profitability of the principal can not be guaranteed, so how can banks ensure the capital preservation and profitability of this part? In fact, it can be analyzed from the following aspects: first, how to deal with market changes in net worth wealth management products issued by banks themselves; Second, how to ensure the correct and effective flow of funds; Third, whether the net worth wealth management products sold by banks can be realized quickly through the purchase and redemption mechanism; Fourth, whether the product meets the regulatory requirements.

Who is suitable to buy net worth wealth management products?

First of all, investors must be clear about the purpose of configuring their products. Bank financing provides financial services for investors and helps them avoid and guard against financial risks. Therefore, investment is risky, which every investor must understand. But many people don't realize that asset allocation is risky, and they don't realize that they have great risks in the process of financial investment. If you have a certain economic foundation, it is realistic and impossible to get a higher income. Secondly, if you have enough asset demand to invest, it is a good choice to buy net worth products, which can save you some time and energy to pay attention to risky assets, thus improving investment efficiency. However, the purchase of net worth products needs to be understood in advance, because the risk preferences of products with different risk levels are very different. For example, people with low risk preference but want to get higher returns can buy insurance products and choose a fixed-income fund that suits them; People who have a high risk appetite but want to get a lower risk level buy equity funds.

Is the online financial management sold by the bank self-financing?

In fact, this question is not much different from the guaranteed income mentioned above, just because banks are gradually reducing their agency business, so this answer is not accurate. The so-called net worth wealth management products belong to a form of short-,medium-and long-term asset management business issued by banks. In order to better develop its business, banks have introduced the net worth management strategy in product design to achieve better market transparency. Under the current model, banks will use amortized cost method and beta model to compare the income and performance of wealth management products. Assume that the expected return of net asset management products after maturity is 1. 1%~ 1.8%, corresponding to the investor's principal +0.3%- 1.4%-0.3%=0.05% (annualized rate of return); If the expected return is 2%~2.0%, the corresponding investor principal +0.2%=2. 1% (annualized rate of return).