When investors choose wealth management products online, they will find that some wealth management products will display information such as net value and net value date. People who have investment experience in wealth management products are familiar with data such as annualized expected rate of return, but are not familiar with net worth. So what does the net value in wealth management products mean? Will the net value change?

1. What is the meaning of net worth in wealth management products?

Net worth generally appears in the information of net worth wealth management products, which refers to the net asset value of each unit share product. The calculation formula is: unit net value = total net assets/product share.

The initial net value of wealth management products is generally 1, but the net value of products will change, with ups and downs, and it is generally announced in fixed cycles such as day, week or month.

In the past, bank wealth management products all announced the expected expected rate of return. After the products are held to maturity, investors can generally get the actual expected return roughly equivalent to the expected rate of return, which has the nature of rigid redemption.

However, bank wealth management is transforming into a net worth wealth management product. The main characteristics of net worth wealth management products are that they do not guarantee the principal and interest, and do not promise the expected rate of return.

The expected income of net worth wealth management products is calculated according to the net worth of the products. The simple understanding is that if the net value of wealth management products is 1 at the time of purchase, then if the net value is higher than 1 at the time of redemption, it is a profit, and if the net value is lower than 1, it is a loss, but both the profit and the loss are borne by the investors themselves.

Second, how do net worth wealth management products judge the expected rate of return?

The historical net value of wealth management products represents the expected income of the products in the past, and does not point to the expected expected income. Investors often can't predict the expected rate of return of net worth wealth management products, but they can take the net worth of products and performance comparison as a reference. It should be noted that the performance benchmark does not represent the expected income commitment.

The above content about what the net value in wealth management products means, I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.