What Are Structured Funds?

Structured wealth management products are a new type of financial products formed by combining financial engineering technology with fixed income products such as deposits and zero-coupon bonds and financial derivatives (such as forwards, options, swaps, etc.)

Structured wealth management products

Structured products have become one of the fastest growing and most promising businesses in the world today.

(1) Price fluctuation of the underlying object

Because part of the floating income of structured products comes from the price changes of the underlying assets to which they are linked, many factors that affect the prices of the underlying assets have become risk factors for structured wealth management products.

(2) Principal risk

Generally, the capital preservation ratio of structured financial products directly affects its maximum rate of return. Therefore, the principal of structured products is partially risky.

(3) Revenue risk

Because the income of structured financial products must fully meet the conditions agreed in its product description, that is, the exercise of options is based on certain standards, the realization of the income of structured financial products is usually two points or a point distribution, so The benefits of structured financial products are often yes or no, without intermediate levels.

(4) Liquidity risk

Structured products usually cannot be terminated in advance, and their termination occurs only when pre-agreed conditions occur, so structured products are less liquid than other bank wealth management products.