What does a net worth wealth management product mean?

Net worth wealth management products are funds raised by banks to invest in capital markets or money markets. The ultimate income of investors depends on the investment income of banks, and banks do not promise a fixed rate of return in advance.

Net worth wealth management products have no expected income, and banks do not promise fixed income. The benefits gained by actual users are related to the net value of products. Simply put, if the net value of the product is 1 when the user purchases it, the user's income on the next open day will be 1.2- 1 = 0.2. If the net value becomes 0.9, the gain is 0.9- 1=-0. 1, which means the loss is 0. 1.

There are three main differences between online financial products and traditional financial products:

1. From the perspective of liquidity, general wealth management products have an investment period, and the funds cannot be redeemed before the expiration; Net-worth wealth management products are highly liquid, and there are open days every week or month, so the purchase and redemption are relatively flexible.

2. Similar to Public Offering of Fund, net worth products will disclose income, which is more transparent than traditional wealth management products of banks.

3. Net worth wealth management products are scattered in different markets, especially some high-risk markets; When the market is good, the income will be higher than that of ordinary wealth management products, and it may also lose money when the market is bad.

Different net worth products have different development and redemption periods. Take Shanghai Pudong Development Bank's 10 net worth products as an example. The opening cycle includes daily opening, monthly opening, quarterly opening, semi-annual opening and annual opening. Each open redemption period will give the current net value of the product. According to the reporter's rough statistics, although there are differences in the yield of different net worth products, at present, the real income of these products has certain advantages compared with fixed income wealth management products in the same period, and the annualized rate of return is higher than that of traditional wealth management by 1-3 percentage points.