In fact, there are several ways to realize wealth appreciation: deposits, bonds, stocks, savings insurance, funds, and of course, higher-risk financial products, futures, options and so on. More broadly speaking, it is also feasible to invest in physical assets, such as real estate, antiques, works of art and so on.
We divide these investable products into four categories:
The first category: products with low risk and guaranteed capital, such as bank large time deposits, money funds, national debt, savings insurance, etc. These products are basically risk-free, but the income is relatively low.
The second category: moderate risk and guaranteed principal, such as corporate bonds, various funds with partial debts, non-stock funds or wealth management products issued by banks. The income of these products is relatively high, but they are basically fixed income, which is not much higher than the deposit interest rate.
The third category: high risk and insecure principal. Needless to say, stocks, futures, various funds with partial stocks, etc. Things that don't necessarily make money.
The fourth category: investment products that are difficult to predict and require the professional ability of investors. For example, antiques, works of art, and some complex financial products, such as trusts and asset management plans. These fields generally require investors to have certain professional ability and financial strength, and the risks vary greatly. Don't participate if you don't understand anyway.
Ordinary people want to manage money, first consider how much risk you can bear, then consider the liquidity of funds, and finally consider the income. If I am a risk averse, with funds around 200,000, I will choose 90% of the second-class products (such as bond funds, bank financing, etc. ) and 65,438+00% of the third category products (stocks or corporate bonds). As my risk tolerance becomes stronger and stronger, I will increase my investment in the third kind of products, but without professional knowledge, the third kind of financial derivatives and the fourth kind of investment products will never participate. As for the first product, I will only consider it when the funds are relatively large.