The safety of baby wealth management products mainly depends on the money fund it is docked with. Money funds don't break even, and the expected income fluctuates every day. Investing in baby financing is not like buying a deposit. What you get is expected income instead of interest, and its stability is slightly worse than that of deposit products.
If the bank goes bankrupt in extreme cases, the insurance company can still pay the deposit products within 500,000 yuan in full, but the money fund may lose money in the following three situations:
1, suffered huge redemption and cashed out in advance, resulting in losses.
For example, in a bull market, institutions want to speculate in stocks and take out all the money stored in the goods-based baby. If the institutional investment of this cargo-based baby accounts for a relatively large proportion, then the huge redemption of the institution will have a great impact on it, and the product may suffer losses in the short term.
2. Investment bonds trample on thunder
During the financial crisis in 2008, an American money fund invested heavily in Lehman Brothers. As a result, Lehman Brothers went bankrupt, and the money fund fell below its net value, so it had to apply for liquidation. This phenomenon has caused panic among investors. Many money funds were redeemed on a large scale, and many people lost money.
3. The agreed deposit is withdrawn in advance, the agreed interest rate drops, and the expected return is negative.
This situation is similar to the first two situations. Once the centralized redemption of investors causes a run, the money fund can only sell the relevant assets in advance, resulting in product losses.
Generally speaking, although the risk of baby financial management is very low, it is still possible to suffer losses in the event of a liquidity crisis or a run-on storm. In order to prevent this phenomenon, fund companies have also made many changes, such as limiting the daily quick redemption amount.
For investors, in order to avoid this risk, we can choose products with a small proportion of institutional holdings, and at the same time choose money funds with moderate scale, such as10 billion yuan. Ok, this is "Is it safe to finance your baby?" I hope it helps you.
Introduction reading:
What's the difference between Yu 'ebao and Yu Bao Li? It is more convenient to withdraw money!
Is the principal of Yu 'ebao still there? Investors' money will not be affected.