With the improvement of people's economic level, there are more idle funds on hand, so many people will go for financial management. So, how to choose a financial product?
To choose a financial product, you must start from your own situation, taking into account your financial ability and risk tolerance. Not the higher the return on financial products is the better, choose the right financial products, get a solid return is the right way to manage your money.
When you pick a financial product, its degree of risk, safety, liquidity and so on are all to be taken into account. If you don't have a lot of money and don't want to take too much risk, but also need to use the money at any time, you should choose capital preservation, demand financial products, like money funds, treasury reverse repo, and bank deposits and so on.
And if you have more than enough money, and liquidity needs are not large, and can withstand a certain amount of risk, you can pursue some high-risk, high-yield investments, like stocks, gold, futures and so on, are the direction you can choose when selecting financial products.
When selecting a financial product, finding the right one for you is the way to go. You can first classify the products in the market, and then match your needs with the categories to find the most suitable one.
The general investors see a variety of products on the market, usually fall into the selection difficulties, followed by simple and brutal direct selection of products with high historical performance, however, the selection of financial products is a technical work, look at earnings alone can not be enough. If you want to choose the right financial product for you, you must first understand how the historical performance of different products comes about.
First, market fluctuations affect returns. When the market is good, earnings will naturally keep up; conversely, earnings will also decline. High returns are often accompanied by high risk, and generally speaking investors are risk averse and generally do not choose high-risk products. Next is luck, when good luck can be encountered up, but good luck can not be found. Lastly is the ability of the investment manager, a capable investment manager can be used as the basis for relatively sustainable, selection of products.
In short, the selection of products should not be based on historical factors alone, but also analyze the source of high returns and whether they are sustainable.
In addition, there are usually five levels of bank wealth management products, namely, cautious (R1), stable (R2), balanced (R3), aggressive (R4) and aggressive (R5). Among them, the prudent type of finance is represented by the money fund, who has less risk to the principal, while the aggressive type, such as the stock fund, has a higher probability of principal loss but also a high expected return. The probability of risk of principal loss is basically increasing for several categories from R1 to R5.
Therefore, if the capital accumulation is not rich, and is also more in pursuit of stable investment, then it is more suitable to choose these categories of R1-R3. If you have enough capital and are an aggressive or aggressive investor seeking income, you can choose the R4-R5 category.
It should also be noted that the money used for daily living expenses should not be used for investment, and if you invest, you should choose products that are basically risk-free. All in all, there are two secrets to successful investment for everyone: first, ensure the safety of the principal and do not lose money; second, always keep in mind the first.
