The difference between open and closed banking

Open-ended wealth management refers to a wealth management product that can be subscribed or redeemed at any time during the specified trading hours on each statutory working day and can obtain the corresponding expected returns.

Closed-end wealth management means that the wealth management product cannot be redeemed in advance before the fixed redemption date or product maturity date announced in the product manual, and the principal and expected income can only be obtained after the specified period. The differences between open and closed banking are as follows:

1. Differences in expected returns.

From the perspective of expected returns, closed-end wealth management products are higher than the expected returns of open-ended wealth management.

2. Liquidity differences.

From the perspective of product liquidity, the liquidity and flexibility of open-ended wealth management are higher than those of closed-end wealth management, and open-ended wealth management uses the expected income settlement method of monthly automatic interest settlement during the duration of the period.

There is no need to redeem at maturity to obtain the expected return on the principal; Closed-end wealth management, on the other hand, must wait until the deadline is met before you can get back the principal and interest.

3. Selective differences.

From the perspective of product selection, since open wealth management has just started, the closed wealth management at this stage is stronger than the open wealth management in terms of investment starting point, investment type and investment direction, and the closed wealth management with high richness still occupies the mainstream market.

Tips: Different wealth management products have different investment natures, risks and returns, it is recommended that you understand the basic information such as the capital investment direction and risk type of wealth management products in detail before purchasing, and decide to purchase wealth management products that match your own risk tolerance and asset management needs. You can also log in to Ping An Pocket Bank APP-Finance-Wealth Management to learn more about our bank's wealth management products and try to buy them.

The official website shall prevail.

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The differences between closed-end and open-end wealth management products are as follows:

1.Redemption times are different. This aspect is the biggest difference between closed-end and open-ended wealth management products.

Among them, closed-end wealth management products can only be redeemed on a fixed redemption date or product maturity date, but cannot be redeemed in the middle. The most common are some regular wealth management products in banks. For open-end wealth management products, redemption is more casual and there are no restrictions.

The most common are some currencies**.

Users can redeem the currency at any time after purchasing it**.

2.Income is different. Generally speaking, the yield of open-end wealth management products will be lower than that of closed-end wealth management products, because closed-end wealth management products will sacrifice liquidity and users cannot redeem them in advance. Therefore, the normal capital operation of wealth management products.

will be guaranteed to a certain extent. Open-ended wealth management products are highly liquid because they can be redeemed at any time, and the impact on the entire wealth management product is uncertain. Therefore, it may be necessary to keep a portion of the cash for investors to redeem, which may reduce the profit of the wealth management product.

3.The main characteristics of closed-end wealth management are relatively high returns and poor liquidity. Closed-end wealth management products cannot be redeemed in advance, which means that early redemption is restricted.

4.Open-ended wealth management has a lower income than closed-end wealth management, but it has good liquidity and can be redeemed in advance, which can meet the needs of temporary funds. Generally speaking, closed-end bank wealth management products.

The yield value is usually higher than that of open-end wealth management products, especially at the end of the year. Banks usually give short-term wealth management products launched during the Spring Festival even higher expected annualized returns. However, it is worth noting that investors must pay attention to the recruitment period when choosing such products.

During the recruitment period, only interest is paid at the normal prevailing interest rate, which will directly reduce the overall income if the cycle is long, and does not show the advantage of high income of holiday wealth management products. In addition, when choosing a bank's wealth management products, it is necessary to pay attention to whether "wealth management income and wealth management principal are not included in the investment maturity date and funds.""Interest terms between the actual arrival date. If a wealth management product falls on a national holiday.

expired, the income will not be calculated during the holiday period.

Compared with closed-end wealth management products, open-bank wealth management products with interest accrued on the same day can reduce losses caused by long recruitment cycles. And T+0 guarantees that the account can be received on the same day after the long holiday, ensuring the flexibility of using funds and not delaying the next investment plan. Therefore, some financial planners suggest that after the holiday, you can buy your own closed-end bank wealth management products, which can often earn higher income.

The difference between closed-end and open-ended wealth management products:

The so-called closed-end wealth management product means that the wealth management product cannot be redeemed in advance before the fixed redemption date or product maturity date announced in the product manual. From the perspective of product richness, the current closed-end expected return products perform better in many aspects such as product investment starting point, investment currency, product object, and product investment direction. Common closed-end wealth management products include closed-end bank wealth management products, that is, those that are only developed for subscription and redemption in a fixed period.

In addition, the more common type of closed physical property type is closed ** product, and the definition of this closed ** is mainly compared with open ** product.

As we all know, open-ended products can be subscribed and redeemed, and some of the more common currency** wealth management products and Yu'e Bao and so on are open-ended products. Different from the direction, new share subscription products, bank-trust cooperative products, QDII products, structured products, etc., are also the statements we often hear and see. Considering that open-end wealth management products started late, the richness of the two types of products on the retail side will gradually converge in the long run.

On the institutional and peer side, due to the relatively low liquidity demand, the closed-end expected return type will still be the mainstream.

For friends who have just set foot in investment and financial management, it is particularly important to learn financial knowledge, personal investment and financial management must start from the beginning, and it is not too late to understand the introduction and skills of financial investment.

The difference between closed-end wealth management products and open-ended wealth management products.

1. Closed-end wealth management products.

According to the principle of high yield adhered to by wealth management products, generally speaking, closed-end wealth management products have relatively high returns and poor liquidity, and cannot be subject to early redemption or early redemption.

2. Open-ended wealth management products.

Compared with closed-end wealth management products, open-ended wealth management products have lower returns, and the biggest advantage is that the liquidity of funds is better, and early redemption can also be carried out, which is more convenient for temporary capital needs.

If your funds are to be used frequently, it is recommended to buy open-ended wealth management products, because the cycle is short, you can redeem the money in time when you need it, and if you do not redeem the open-ended wealth management products, they are generally automatically recycled. Closed-end wealth management products cannot be redeemed in advance, the cycle is long, and they can not be redeemed in time when they need to use money.

When you buy bank wealth management, you must combine your own liquidity requirements for funds, so as to make the right financial decisions. Blindness is a taboo in financial management, and it is necessary to carefully distinguish between open and closed. If some investment users have high requirements for capital liquidity, they can buy open-bank wealth management products or some currencies**.

For example, if you want to sell this thing today, the money will arrive in a few days, but if your closed financial management is your financial product, he has a certain amount of time, for example, he has a one-year closed period, this one-year time, you have no way to use this money.

The difference between open and closed banking is like the difference between demand and time deposits in a bank.

The income of open financial management is lower than that of closed financial management, but when you need to use money, you can easily withdraw it. Closed-end wealth management is not mature, you can't withdraw money, and it is stricter than time deposits, as long as you give up part of the interest on time deposits, you can withdraw them, and closed-end wealth management can't take them out.

1.Redemption Method. Open banking can be subscribed and redeemed at a designated time period every working day. Closed-end wealth management cannot be redeemed before the interest calculation period has expired.

2.High and low returns. Closed-end wealth management products have relatively high returns, and open-ended wealth management products have relatively low yields.

3.Liquidity. The liquidity of closed-end wealth management products is poor, while that of open-end wealth management products is stronger.

The difference between open-ended wealth management products and closed-end wealth management products is that open-ended wealth management products can be sold at any time, while closed-end wealth management products can only be sold after the end of the closed period.

The productivity of labor depends not only on the skill of the laborer, but also on the perfection of his tools. The same kind of tools, such as cutting tools, drilling tools, chisels, and hammers, are used in different labor processes, and the same tool is used in different operations in the same labor process. But as soon as the different operations of the labour process are separated from each other, and each local operation acquires the most suitable and therefore specialized form in the hands of the local worker, the tools used to be used for different purposes are bound to change.

The direction of change in the form of the tool is determined by experience drawn from the special difficulties posed by the original form of the instrument. The differentiation of the instruments of labour and the specialization of the instruments of labour are characteristic of the workshop handicrafts, the former giving the tools of the same kind a special fixed form suitable for each particular purpose, and the latter378 which makes each such special tool fully functional only in the hands of specialized local workers. Around 500 different hammers are produced in North Mingham alone, each of which is only suitable for a particular production process, but often several hammers are used for different operations in the same process.

During the period of workshop handicrafts, the tools of labor were simplified, improved and diversified through the special functions of the tools of labor suitable for local workers. In this way, the period of workshop craftsmanship also created one of the material conditions of the machine, because the machine is made up of many simple tools.

1. Flexibility is differentClosed-end ** during the closed period, investors can not subscribe and redeem operations, while open-ended ** can subscribe and redeem during the trading day, and its flexibility is better.

2. The quota limit is differentThe ** share of the closed-end ** is fixed, and cannot be increased or decreased without the approval of legal procedures during the closed period, and the scale of the open-ended ** is not fixed, and investors can apply for subscription or redemption at any time, and the ** share will increase or decrease accordingly.

3. The risks are differentThere is a certain period of closure in which investors cannot sell, and during this period of time, the market is unpredictable, while open-ended can be redeemed at any time during trading hours, which can timely respond to the risks brought about by market changes, resulting in less risk than closed-ended.

Open wealth management means that you can buy and sell at any time, and closed will have a closed period, during which you cannot buy and sell financial products.

1. Open-ended wealth management products: Generally speaking, the yield will be slightly lower than that of closed-end wealth management products, and the biggest advantage of open-ended wealth management products is that the liquidity of funds is relatively good, and early redemption can be carried out, which is more convenient for temporary capital needs.

2. Closed-end wealth management products: Generally speaking, closed-end wealth management products have relatively high returns and poor liquidity, so they cannot be redeemed in advance or are restricted in early redemption.

Whether it is open or closed-end financial management, there will be certain investment risks, please be cautious about investment.