Traditional Culture Encyclopedia - Traditional stories - What is a bank financial product

What is a bank financial product

Wealth management products, i.e., a type of wealth management products designed and issued by commercial banks and formal financial institutions, in which the collected funds are invested into the relevant financial markets and purchased relevant financial products according to the contractual agreement of the products, and the investment income is obtained and then distributed to the investors according to the contractual agreement.

The return is calculated as follows: Assuming that the principal amount of the financial management is RMB100,000, the reference annualized net return rate of investing in the product is 5.4%, and the actual financial management period is 62 days, then the investor's return = 100,000 x 5.4% x 62/360 = RMB930.

Extended Information:

p>Types of Wealth Management

Banks' RMB wealth management products can be broadly categorized into bond-type, trust-type, linked-type and QDII-type.

1, bond type

Invested in the money market, investment products are generally central bank notes and corporate short-term financing bonds. Because central bank bills and corporate short-term financing bills cannot be invested in directly by individuals, this type of RMB financial products actually provides customers with the opportunity to share the investment returns of the money market.

2, trust-type

Invested in commercial banks or other financial institutions with high credit rating guarantee or repurchase of trust products, but also invested in the commercial banks of good credit assets beneficiary rights trust products.

3. Linked

The final yield of the product is linked to the performance of the relevant market or product, such as linked to the exchange rate, linked to interest rates, linked to the international price of gold, linked to the international price of crude oil, linked to the Dow Jones Index and linked to Hong Kong stocks.

4, QDII type

The so-called QDII, that is, Qualified Domestic Investment Institutions, refers to the commercial banks that have obtained the qualification of the valet overseas wealth management business.

QDII-type RMB wealth management products, simply put, that is, the customer will be in the hands of the RMB funds entrusted to qualified commercial banks, the qualified commercial banks will be converted into U.S. dollars, directly invested in foreign countries, after the maturity of the U.S. dollar earnings and the principal amount of remittance into the RMB after the distribution of wealth management products to the customer.

Baidu Encyclopedia - Wealth Management Products