There are several tips to know when investing in foreign currency bank wealth management products.
First, the average income of current products is only about 3%, while the average income of wealth management products is more than 5%.
Under this significant difference, should investors buy foreign currency wealth management products?
Financial experts suggest that from the current market conditions, it is not suitable to convert yuan into foreign currency to buy bank wealth management products.
In addition, for investors who need to hold foreign currency, they can choose to invest in foreign currency financial products accordingly.
First of all, we should determine their risk tolerance, choose a guaranteed return or non-guaranteed floating return product.
Second, foreign currency financial products, different banks issued products are quite different.
Investors can make more comparisons and make decisions, even though different products in the same currency and at the same maturity can have very different revenues.
What’s more, as things stand, banks are giving VIP customers higher returns than average investors.
We have to compare in many ways and choose the one that offers the best value for money.
For now, if the downward trend in yields is significant, choose a product with a longer duration to maintain income.
Finally, look at the product carefully before making a purchase.
Since the related objects of foreign currency financial products of banks are mainly indexes, stock baskets, bond funds, etc., investors need to fully understand the profit structure and profit model of the products, as well as the possibility and scope of profit and loss of the products under various market conditions.
We should also look at the cost of foreign currency financial products.
Generally speaking, the overall cost of foreign currency financial products is not high, usually 0.4% or 0.45% of the sales service fee.
Some banks do not charge such fees.
The custodial fee is 0.02% or 0.025%.
Usually, these fees are not cumulative.
For varieties involving trusts, a trust fee of 0.02% is charged annually.
Investors would do well to compare.
With similar returns, they can choose the higher-return variety, which can be compared with many banks.