At the risk level, the risk of buying funds is higher than that of wealth management products. Although the risk of funds is less than that of stock trading, it does not mean that all funds are low-risk. For ordinary individual investors, if they don't master some basic financial knowledge, they are likely to suffer investment losses. Although there are certain risks in purchasing wealth management products, they are lower than most funds and simple to operate, which is more suitable for people without investment experience. But relatively speaking, wealth management products have a fixed term and poor liquidity, and the expected return of the fund is higher in terms of income.

Extended data:

Wealth management products actually have a wide range. If we want to compare with funds, I will understand that the wealth management products here refer to the fund investment and wealth management plans issued and sold by banks or some financial institutions. When comparing the two, we can compare them from three angles: risk, liquidity and income.

① Risk

Many people say that the risk of funds is relatively high, while the risk of wealth management products is relatively low, which can only be said to be a prejudice. Because there are also low-risk funds such as money funds, and bond funds are only low-risk products; In addition, wealth management products are not only PR 1 and PR2 wealth management products. In fact, the risk level of wealth management products ranges from PR 1 to PR5, and the risk of PR5 wealth management products is not necessarily lower than that of funds.

② Liquidity

Speaking of liquidity, some people will say that the liquidity of funds is definitely higher than that of wealth management products, but this is not the case. It depends on the type of fund you buy and the type of wealth management products you buy. You know, there are also many net worth wealth management products that can be redeemed at any time, which is more flexible. Like most funds, it belongs to T+ 1 or T+2. There are also many closed-end funds in the fund, and it will take a year/a year and a half or even three years to redeem them.

③ Profitability

It is estimated that some people will still say that fund income is higher than wealth management products, which is actually a misunderstanding. This also depends on the product you choose. If we compare the money fund with the medium and long-term wealth management products, we will get the conclusion that the wealth management products have higher returns.

In fact, risk, liquidity and profitability can be considered together. If the three are the same, wealth management products and funds will not be much different. It is better just to see which product is more suitable for investors. Some people like high-risk products. Besides stock funds, they can also choose PR5-level financial products. Some people like low-risk products, so they choose bond funds and PR2-level wealth management products.