Guard against traps in financial products and funds

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Guard against traps in financial products and funds
Shi hanbing

Recently, many people who have purchased banking products have been fooled-many financial products have lost money or zero profits, and some financial products have suffered 70% losses. In this case, if you want to redeem it, you have to pay a 3% service fee based on the contract. Investors are like they are using a knife!
Financial products have many traps and many investors feel cheated.
At present, many banks do not have enough prompt about risks when selling financial products, or even leave them blank. The materials they give are basically in professional financial terms, and the income calculation method is also very complicated. Unless the professional, the average person does not understand it at all, and in this process, the trap arises.
For example, most of the linked stocks of some financial products have risen, and they have risen sharply, but only one stock has fallen. In the opinion of general investors, such financial products will certainly bring a lot of benefits to you. Error! The design of financial products is far from that simple. If there is a big gap between the most-increasing stock and the least-increasing stock, you may have zero gains or even losses!
Where is the problem?
Here is an example.
The following is an article from the Financial Times January 24, 2008 (original ):
On September 19, December 24, 2007, China Pudong Development Bank issued the "announcement on the final earnings of the ninth F1 and F2 plans for the financial transactions in 2006 ", the revenue calculation method stipulated in the F2 Product contract (financial return rate of the plan = maximum value [16%-(best stock performance value-worst stock performance value), 0%]). Best stock performance value-worst stock performance value = 98.87%, 2006 ninth stage F2 plan's expiration rate is 0 ......
Why is the benefit zero?
Mr. Zhou luhua made a professional analysis. The following is an analysis from Shanghai Securities News in February 25, 2008 (original article ):
The general situation of pofa's financial products is as follows: select four representative companies in the H Shares Market: Sinopec, BOC Hong Kong, China Merchants Bank, and China Mobile to calculate their respective increases and declines within one year, apply the formula: 16%-(maximum increase-minimum increase). If the value in the brackets is greater than 16%, the customer who buys the financial product will receive zero benefits. If the value in the brackets is zero, then the customer can get a maximum rate of 16%. The result is that the annual increase of China Merchants Bank (China Merchants Bank) among the four stocks is about 90%, which is far higher than the annual increase of China Bank (Hong Kong). As a result, the value in the brackets is greater than 16%, and the customer's income is zero.
I don't know if you understand it.Financial products are designed by banks, and their products are naturally inclined to the Bank's own interests.For example, some financial products are designed as follows: You can get the maximum benefit only when all the stocks linked to financial products have risen and the gains are the same. Otherwise, it may be zero profit or loss!
Secrets from industry insiders:Banking wealth management products are not operated by banks. They are backed by financial management teams such as investment trust companies or fund companies. Through the bank's platform, the capital party receives a huge amount of money for capital operation. According to the agreement between the two parties, as long as the bank completes the sale of financial products, it can get a lot of management fees. According to the agreement between the customer and the Bank, if the final income falls within the benchmark income, the bank only charges a fixed management fee. If the return rate exceeds the benchmark, the bank withdraws a floating management fee based on a certain proportion. The higher the rate of return, the higher the percentage of Commission, some banks as high as 40%. In the event of financial losses, the bank will be safe, and the customer will find it unlucky, according to the "disclaimer" in financial products.
Some investors did not see the relevant contract when purchasing financial products. For example, after the zero-income financial product incident, the relevant staff of Shanghai Pudong Development Bank responded as follows ):
Pudong Development Bank Financial Products Zero-income events, due to the recent major websites frequently appear hot posts. The poster said: In December 28, 2006, his mother bought the F2 plan of Shanghai Pudong Development Bank for 0.1 million yuan (with a one-year term ). At that time, the expected rate of return introduced by the bank was 0%-16%. However, the actual rate of return on the product's expiration date (December 28, 2007) is zero. This post has aroused widespread attention. Some media reported that, in this "Storm", some branches of Shanghai Pudong Development Bank comforted investors and compensated them with coupons. Yesterday, the reporter called the customer service hotline of Shanghai Pudong Development Bank Chongqing Branch as an investor. A staff member said ......The contract clearly states that the expected rate of return for this product is 0%-16%, which indicates that the product may return zero upon expiration. Therefore, investors should be responsible for the zero profits of the product.Previously, Gao Xia, general manager of public relations in the office of Shanghai Pudong Development Bank, said in an interview with the media that coupons and other gifts were offered at some outlets of some branches of Shanghai Pudong Development Bank, there are no compensation terms in the contract for this product.
The above is an example of this kind of product provided by China Pudong Development Bank, because many media reports on this wealth management product of China Pudong Development and the public is very concerned about it. In fact, the design of some wealth management products is more complicated than that of China Pudong Development, although this product of PUFA has zero profits, there is at least no loss, and investors suffer even worse.
Financial Products and funds are the same. Many of them are linked to stocks. In this case, it is better to invest directly in stocks. Why should we go through this link? Can the so-called financial experts really help small investors realize the dream of increasing wealth? Difficult.
Many people tend to buy funds. Funds are separated. For example, a stock fund gives you money and they help you buy stocks. The problem is, after this step, you have to pay the price. Let's not talk about other things. For example, some funds are doing short-term hyping back and forth, and the money from the foundation is inappropriate. Why? Some funds and brokers are one of them, and they have to pay the handling fees for the back and forth. The handling fees come from investors, but the beneficiaries are brokers! What's more, let's make a big rat warehouse and take the money from the masses for personal gain! There is also the money of the people who take the money of the people to invest in random, the people's hard-earned money as cannon fodder, as a tool!
Due to lack of supervision, what are these funds? Due to system vulnerabilities, why are these banks inclined to investors when designing financial products?
Due to institutional loopholes, when poor investors hand over their hard-earned money, they are disappointed when they try to help them cope with rising prices through financial experts and investment experts, it is even plundered.
Therefore, in addition to cursing people's greed and selfishness, we should promote the perfection of the system.
I know that writing such articles is a huge pressure for a person working in the securities news industry. However, I think it is necessary to write these articles only when the pictures are uncovered, only when attackers converge can they get fairness and justice.
In addition to complaints, we must constantly strive to solve the problem and improve the system.
Written in February 28, 2008

After careful analysis, the stock market fell sharply in the next two years, but there are still a lot of dividends in the fund industry. It is normal for an ordinary fund manager to earn hundreds of millions of yuan in revenue, the Fund's advertising fees, commissions for banks, and other intermediary links are very high, so where do they make dividends?