Now everyone's financial awareness has increased. Compared to the older generation, they like to keep their money in the bank. Now this generation is more willing to try new financial products. But now that there are so many financial products, how can you choose the product that suits you? Today, I would like to introduce to you the six things that should be paid attention to when purchasing wealth management products.
The first: whether the issuing unit is compliant
When we buy wealth management products, the first thing we need to pay attention to is whether the platform that issued this wealth management product is compliant. Banks, securities companies, investment firms and some formal Internet platforms are all reliable methods. Taking the wealth management products sold by banks as an example, in addition to selling some self-operated products, banks will also help other institutions to sell on behalf of other institutions. Relatively speaking, self-operated products are safer than consignment products, because the self-operated product bank needs to be responsible, while the consignment product, the bank is only responsible for sales, and nothing else is responsible. Like Alipay, which we often use now, there are many wealth management products on it, but it should be noted that Alipay is only a "consignment" platform, and the products are issued by other companies. Although Alipay will conduct audits, everyone should still keep their eyes open when purchasing. Therefore, when purchasing wealth management products such as bank wealth management products, we must pay attention to carefully reading the product manual, see who the issuer is, and try to choose some products issued by well-known institutions.
The second: product profitability
The fundamental purpose of investment and wealth management is to obtain profits. Yield is also the core competitiveness of various wealth management products. Whether it is to go to the bank to buy, or to buy on an Internet financial platform such as Alipay, each product highlights its own rate of return. However, we should not only look at the rate of return, but also consider other factors. For example, some products have a high rate of return, but the investment time is long or the risk is high, which requires everyone to consider comprehensively according to their own needs.
The third: the safety of the product
All wealth management products have a risk rating, and when we buy wealth management products, we also assess the risk acceptance of individuals. Financial products are divided into five categories according to the risk from low to high, such as prudent, stable, balanced, aggressive and enterprising, generally in the form of R1-R5, or directly marked as "low risk" or "medium and low risk" on the product. You can purchase based on your own risk assessment results. If you are a risk averse person, R2 and R1 are the most appropriate. Some are capital-protected wealth management products, and some are not capital protected, but the risk fluctuations are very small.
Fourth: flexibility of payments
The flexibility of financial products, in simple terms, is whether the funds we invest can be withdrawn at any time when needed. It is inevitable that there will be times in life when money is urgently needed. Nowadays, financial products can be divided into two categories: closed and open. Closed, that is to say, when you invest in this product, you can't get it out without expiration. Open Banking can be redeemed at a specified time, but the situation varies depending on the product. Some products are subject to a redemption fee when redeemed at a specific time. Therefore, when purchasing, it is also necessary to clearly read its subscription and redemption regulations, and subscribe according to the idleness of the funds in hand.
Fifth: The starting purchase amount
The institutional amount refers to the minimum purchase amount of a financial product, below which it cannot be purchased.
Different wealth management products have different minimum purchase amounts. This one is relatively simple. Wealth management products will also clearly mark the minimum purchase amount, and everyone can choose according to their own affordability.
Sixth: allocation of funds
I believe that everyone has heard a saying called "don't put eggs in the same basket", which can be called the "golden sentence" of investment and financial management. Since the risks, benefits and flexibilities of each financial product are different, it is important to "diversify risk" when investing. You can allocate your funds reasonably, such as spending 10% on living expenses, setting aside 30% for emergency funds, and then using 30% for long-term investments and the remaining 30% for short-term investments. Contingency funds can purchase financial products with low risk and high flexibility, which will not hinder the use of them and bring benefits. If the risk tolerance is high, it is also possible to allocate funds between medium and high risk and medium and low risk products according to the risk level to ensure safety and obtain higher returns as much as possible.
Another phrase we often hear is that "investment is risky, and you need to be cautious when entering the market". Before purchasing wealth management products, we need to understand some relevant knowledge. Novice investors can buy some products with lower risk and lower starting prices. Read the product brochure carefully, consider your own needs, and do not blindly invest.