Advantages and disadvantages of financial products of securities companies Analysis of the advantages and disadvantages of financial products of securities companies

When you open a financial platform, you will see a financial product of a brokerage firm, which is a financial product issued by a brokerage firm. Brokers collect investors' assets and are managed by professional investors. What are the advantages and disadvantages of brokerage wealth management products?

Advantages and disadvantages of financial products of securities firms

Advantages:

1, issued by regular institutions

Securities companies are issuers of wealth management products of securities firms, which are supervised by the CSRC. Most of the well-known securities companies are state-owned holding companies with relatively strong strength.

The investment funds of wealth management products of securities firms are not managed by securities companies but by third-party banks.

2. The expected rate of return is relatively high.

The collective asset management plan of securities companies can invest in equity products, so the expected expected rate of return of brokerage wealth management products is slightly higher than that of bank wealth management.

Disadvantages:

1, poor liquidity

Brokerage wealth management products generally have a closed period, during which early withdrawal is not supported, and most brokerage wealth management products do not support transfer, so the liquidity of products is poor.

2. The broker extracts the performance reward.

Brokers will extract certain performance rewards according to the expected income of wealth management products. For example, taking a brokerage wealth management product as an example, the product specification stipulates that the annualized expected rate of return for the holding period is less than or equal to 6%, and the annualized expected rate of return is greater than or equal to 6%. The excess will be based on the number of years held.

3. Output rate

Brokerage wealth management will charge a certain percentage of custody fees and management fees, and the rates are generally accrued on a daily basis.

4. The investment threshold is high.

The starting investment threshold of brokerage wealth management products is similar to that of bank wealth management products, with the minimum starting investment of 5, and the starting investment amount of some products exceeds 654.38+10,000 yuan.

Brokerage financing is not suitable for everyone. Investors are advised to choose suitable financial products according to their own needs and capital conditions. Finally, remind investors that financial management is risky and investment needs to be cautious.