What does the bank wealth management net worth type mean?

In modern society, there are more and more financial channels, but the bank channel is still the financial channel that most people choose. When we choose bank financial products, we will find that many financial products have the words "net worth financial products", so what does the net worth type of bank financial management mean?

what does the bank wealth management net worth type mean?

the net value type means that the income of wealth management products completely follows its net value, and the net value is the value of wealth management products. If the value goes up, the investment will gain; if it goes down, the investor will lose money. Therefore, the characteristics of net worth wealth management products are that the income fluctuates and the principal is not guaranteed, so investors need to be responsible for their own profits and losses. Before the rigid redemption is broken in 218, bank wealth management is still based on expected income products. Even if this part of products lose money, banks will take out funds to make their products achieve the expected income.

since investors who buy net worth wealth management products need to be responsible for their own profits and losses, we should know the risks before buying them. The first thing we should pay attention to is the maximum retracement of the wealth management product. The maximum retracement refers to the decline from the highest point to the lowest point since the product was established. The greater the maximum retracement, the higher the risk.