Bank wealth management products are not safe and reliable, and there is the possibility of losses. Its income fluctuates with the fluctuation of the subject matter. Most bank wealth management products will invest in bond market, stock market, fund market and money market. When the market is bad, bonds, stock markets and funds continue to fall, which will lead to losses in bank wealth management products. Generally speaking, the higher the risk level of wealth management products, the greater the probability of principal loss, and wealth management products are divided into five categories.
For depositors, the risks they face after purchasing bank wealth management products are:
Market risk: part of the funds of wealth management products will be invested in financial markets such as stocks and funds, and there will be risky wealth management products in these markets.
Policy risk: loose monetary policy or tight monetary policy will affect the net value fluctuation of wealth management products.
Managing risk: Buying wealth management products means entrusting funds to a trusted manager for investment. If the manager's stock selection or stock selection does not match the market, the product may lose money, so investors will also face this risk.
Operational risk: Some wealth management products can be redeemed flexibly. If investors do not operate properly, they may chase up and down, resulting in account losses.
Liquidity risk: Some wealth management products are closed and cannot be taken out during the closed period. The longer the closure period, the greater the liquidity risk. Conversely, the shorter the closure period, the smaller the liquidity risk.