Do you want to rush or not?, Lowest to 0! Bank Wealth Management Announces Fee Reduction Products | Wealth Management Products | Banks
A reporter from China Securities News recently visited bank branches in Beijing and found that the allocation value of bank wealth management products is being favored by investors under the trend of decreasing bank deposit interest rates. Blind box lottery, cash red envelopes, live streaming activities... Some bank wealth management companies are taking the opportunity to launch marketing activities such as the "Summer Wealth Management Season".
Multiple bank wealth management companies have launched product rate discounts, reducing fixed management fees, sales service fees, product redemption fees, and other fees for some wealth management products. Experts say that for investors, lowering the rates of medium - and short-term financial products is beneficial for reducing investment costs. But do not use the high or low rate as a decisive factor in choosing financial products, and still make rational choices based on your own actual situation.
Seize the "Summer Financial Season"
"The decrease in deposit interest rates is a major trend. You can try wealth management products. Although they do not guarantee principal and interest, the returns may also be higher. If you do not like the risks, you can choose to diversify the allocation of deposits, wealth management, and insurance products, which can also improve overall returns." When the reporter consulted about deposit products, a customer manager of Bank of China recommended bank wealth management products to the reporter.
The continuous reduction of deposit interest rates, coupled with the recovery of returns on some wealth management products, has led to the return of funds to the wealth management market. According to Puyi Standard data, the scale of existing products of wealth management companies increased by 0.7% compared to the previous month at the end of May, and fixed income products boosted the recovery of wealth management scale. Wang Yifeng, Chief Analyst of Everbright Securities, believes that some wealth management products will show seasonal effects in June, and the "interest rate cut" is expected to provide strong support for the scale of wealth management products.
The reporter noted that the South Bank of Finance, North Bank of Finance, Kunlun Bank, etc. are taking advantage of the launch of summer financial marketing activities. The financial staff of NDB told reporters that compared with last year, there are many innovations in the form and content of the "616 Financial Management Festival" launched this year. For example, the opening of blind box lottery awards that fit the interests of young people, the portrayal of rich investor portraits, and more accurate product recommend.
Launch a "rate discount" campaign
Recently, CMB Wealth Management launched a bank wealth management equity public offering product that does not earn money and does not charge management fees, which has attracted market attention. The reporter noticed that recently, several wealth management companies such as Bank of China Wealth Management, Everbright Wealth Management, Huaxia Wealth Management, and Beiyin Wealth Management have announced the reduction of some wealth management product rates. The rate discounts mainly include fixed management fees, sales service fees, and redemption fees for wealth management products.
In terms of fixed management fees, some bank wealth management companies have lowered the management fees of some products to 0. Taking Bank of China Wealth Management as an example, it announced that from June 21 to July 5, it will offer discounts on the "Bank of China Wealth Management - Enjoy Every Day" product rate, reducing the fixed management fee of the product from 0.15% to 0.00%.
Some wealth management companies have lowered their sales service fees. For example, Huaxia Wealth Management announced that starting from June 21st, it will offer a discount on the sales transaction rate for the 4th C share of cash management wealth management products, with a discounted rate of 0.15% per year.
Some wealth management companies have also implemented a dual approach, simultaneously lowering product management fees and sales service fees. Taking Beiyin Wealth Management as an example, the company has made rate discounts an important part of its "wealth management season" marketing campaign, stating that it will comprehensively reduce the sales and management fees of products such as Yitao Gold, Yitao Gold Exclusive, Yitao Gold New Customers, Yibao Gold, and Tiantian Gold to 0.01%.
Wealth management companies have also launched a campaign to waive product redemption fees. Everbright Wealth Management announced that in order to better serve new and old investors and optimize the investment experience, it plans to continue to carry out the "Sunshine Orange Profit Increase Stable No.1" wealth management product redemption fee discount activity, and the promotion period will be extended to February 9, 2024. During this period, customers who successfully accept redemption transactions on product open days are exempt from the collection of redemption fees.
Industry insiders have stated that the rate reduction will increase the attractiveness of wealth management products to investors, and is one of the effective competitive means for wealth management companies to expand their scale in the short term. However, in the long run, the possibility of sustained growth is relatively low.
Li Mingjin, Senior Investment Advisor at Jufeng Investment Consulting, told reporters that banks and wealth management subsidiaries lowering product rates is one of the ways to implement fee reduction and profit sharing policies, as well as a competitive means to attract and retain investors and seize market share. For investors, adjusting the rates of medium - and short-term financial products is beneficial for reducing investment costs.
Several experts emphasize that high or low rates should not be a key factor for investors when choosing financial products. In the view of Dong Ximiao, Chief Researcher of Zhaolian, investors should consider multiple factors such as their own risk preferences, liquidity needs, and investment experience before choosing a suitable financial product.
