Financial Products Linked To Gold Crude &Nbsp; Pie? Traps?

Looking back on the development of world economy over the past two years, the price rise of commodities is an indispensable part. Recently, the price of gold and crude oil has reached a new high, which is a concentrated expression of this ring.

So who has gained the profits? How should we make money now with the pace of commodities?

Polish your eyes and find the right way, because there are pies on the way of financial management.

Linked crude oil financial products

The worst income is not as good as the current account.

Affected by global economic recovery demand pull, excess liquidity and geopolitical factors.

However, the design of such structured products is often very complicated. If the trigger conditions for high yield are not set, investors will only get the proceeds that are not as good as demand deposits.

Therefore, financial experts tell investors that they do not understand the financial products, it is best not to buy.

Investment 50 thousand

Two and a half years may only earn 450 yuan.

According to statistics, between January 1st and April 12th this year, 8 of the 149 products issued by foreign banks were linked to commodities, of which 4 were related to crude oil futures.

Hang Seng Bank launched the "win win" commodity linked guaranteed investment product in January 18, 2011. The product is a RMB product with an investment period of 1 years, a purchase threshold of 100 thousand yuan, and a minimum return on investment of 0.36%. The product is linked to WTI, the New York Mercantile Exchange.

According to the product design book, the potential return rate is the maximum value in the following three formulas: participation rate * final price / initial price -1), participation rate * (1- final price / initial price), and the lowest return rate of 0.36%.

Among them, the participation rate is 50%, the initial price is "determined by the bank based on the initial price decision".

It is understood that Hang Seng Bank's initial price decision date (January 31st of this year) WTI crude oil futures price of 95.82 U.S. dollars / barrel.

The reporter calculated yesterday afternoon's WTI price of US $108.15 / barrel, with a potential return of 50% x (108.15/95.82-1) =6.4%.

However, this product has set up a trading range: the price ceiling is 130% of the initial price, that is, 124.566 dollars, and the "lower price limit" is 75% of the initial price, that is, 71.865 dollars.

If at any time during the observation period, the price of the commodity has been equal to or higher than 124.566 US dollars, and equal to or less than 71.865 US dollars, the investor can only get the lowest annual return rate of 0.36% or even the current account.

The products of another foreign bank are similar. The commodity linked futures are three kinds of crude oil, copper, gold and soybeans.

If the value of all linked targets is higher than or equal to 106% of the starting price, the investor can get an annual yield of about 9%, equivalent to 50000 yuan in investment and 11250 yuan in 2.5 years.

If the trigger event never occurred, investors could only get 0.36% of the minimum annual yield, equivalent to 50000 yuan in investment and 450 yuan in 2.5 years.

Expert advice: less touch objects

Unfamiliar products

In the product manuals of financial products, there is often a description of "linked objects", that is, what products are invested, such as stocks, futures, etc.

For investors, understand

Deng Zeyu, a private bank financial manager of Sichuan branch of Bank of communications, said that bank financing products are not mysterious, and investors should try to avoid linking them with unfamiliar investment targets.

Deng Zeyu said, for example, a financial product linked to futures trading, investors purchase is actually an analysis of product designers.

Some financial products will design several observation intervals. Investors without futures knowledge are usually difficult to understand the concept of observation interval.

On the contrary, if there is a certain futures knowledge, investors can make their own judgement according to several observation intervals designed to see whether the designer is accurate in determining the trend, so as to decide whether to invest or not.

For investors, the choice of bank financial products should fully understand the investment object of the product, especially the calculation method of clear income, so as to correctly judge the risk.