If investors want to make profits from investment and financial management, they should first learn to effectively control risks. After all, there are more or less risks in any financial management product, and the types of risks are different. If investors can't control risks in time, it will inevitably have a certain impact on investment and financial management, and even directly affect the amount of income or principal. Therefore, before investing in financial management, investors should first understand how to effectively control risks, and what principles must be followed in controlling risks in investment and financial management?

principle 1: set financial management goals

I believe that most people's financial management goals are to achieve financial appreciation, but whether they can be achieved in the end depends on personal economic ability and the nature of financial products. Assuming that the fund is fixed, then the principal is guaranteed, but the income is very low, so the value-added effect of such wealth management products is very poor, so the correct financial management goal is very important.

principle 2: understand the nature of the product

the nature of the product determines the final financial management effect. therefore, investors need to choose the appropriate financial management products according to their financial management goals in order to achieve the best results. For example, the above-mentioned fixed investment of funds is a wealth management product with strong savings nature, while stocks are a high-yield wealth management product, and there is a great difference between them.

Principle 3: Learn to manage funds

The management of investment funds is very important, including the cost required and the final income, and it will also affect the investment risks that investors need to bear, so learning to manage funds properly will also be of great help to achieve financial management goals.

Reasonable investment and financial management portfolio

Investment "one-point method"-suitable for poor families. Choose cash, savings and bonds as investment tools.

investment dichotomy-low-income people. Choose cash, savings and bonds as investment tools, and then consider buying a small amount of insurance.

investment "trisection"-suitable for those with low income but stable. You can choose 55% cash and savings or bonds, 4% real estate and 5% insurance.

investment "quartering"-suitable for those with higher income but weak risk awareness, lack of specialized knowledge and spare time. Its investment portfolio is: 4% cash, savings or bonds, 35% real estate, 5% insurance and 2% investment funds.

investment "five-point method"-suitable for those with strong financial resources. Its investment ratio is: 3% in cash, savings or bonds, 25% in real estate, 5% in insurance, 2% in investment funds and 2% in stocks and futures.