1. Insurance against inflation risks: An analogy: an insurance company invests in a highway!

When the charging profit is 10 yuan, the insurance company will take 7 yuan to share.

When inflation comes and the profit from charging is 100 yuan, the insurance company will take out 70 yuan as a share.

This is to fight inflation!

Insurance, including universal insurance, children’s education insurance, etc.

If the protection type, especially those of consumer insurance, of course do not provide protection against inflation.

We only help you financially when you encounter risks.

Only insurance with a savings nature, such as participating insurance, can protect against inflation.

But you need to hold the policy for a long time.

However, inflation in the real sense cannot be resisted. Insurance is just a kind of financial compensation to prevent you from suffering losses.

For example, 10,000 yuan will shrink by 50% in 20 years, and if it is insured, it will shrink by up to 20%.

2. Fund fixed investment to combat inflation risks: use the average cost method to dilute investment costs and reduce investment risks.

There is no need to consider the timing of investment at all to avoid suffering from greed and fear.

Accumulate a little and make a lot, and reap compound interest by holding it for a long time.

The procedures are simple, lazy people can invest, and enjoy expert financial management.

First, invest regularly and accumulate a small sum of money.

Investors may have some idle funds every once in a while. By purchasing targets through a regular fixed investment plan for investment appreciation, they can "gather sand into a hill" and accumulate a considerable amount of wealth without knowing it.

Second, there is no need to consider the timing of investment.

The key to investing is to "buy low and sell high", but few people grasp the best buying and selling points to make profits when investing. In order to avoid this kind of human subjective judgment error, investors can invest in the market through a "fixed investment plan"

, there is no need to care about the time of entry, no need to care about market prices, and no need to change long-term investment decisions due to short-term fluctuations.

Third, invest equally to spread risks.

Funds are invested in installments, and the cost of investment can range from high to low. The long-term average is relatively low, so investment risks are dispersed to the maximum extent.

Fourth, the compound interest effect is considerable in the long term.

The income of the "fixed investment plan" is a compound interest effect. The interest generated by the principal is added to the principal to continue to derive income. Through the effect of interest compounding, as time goes by, the compound interest effect becomes more obvious.

The compound interest effect of fixed investment takes a long time to fully manifest, so it should not be terminated casually due to short-term market fluctuations.

As long as the long-term prospects are good, the short-term market decline is an opportunity to accumulate more cheap units. Once the market rebounds, the long-term accumulated units can be profited at once.

3. Saving to fight inflation risk: If you put your money in the bank to earn interest, the interest earned will actually get a negative return after deducting the inflation factor. If you invest in the stock market and face fierce market fluctuations in the short term, you may lose your capital.

risk.

Therefore, it is not recommended to invest savings to protect against inflation risks.

The current stock market is highly volatile and short-term risks are high. This does not mean that long-term returns are not as good and stock investments should be avoided. Similarly, excellent performance in the past does not guarantee the same performance in the future. What has risen in the past few years may fall today.

The cycle, which has been declining in the past few years, may go against the current and become a strange phenomenon in the chaotic market.

Invest in the medium to long term, don't pay too much attention to short-term fluctuations, and don't put all your eggs in the same basket.

Therefore, in the current market conditions, what investors can do is to build their own investment portfolio, diversify asset allocation, and spread risks as much as possible.

The biggest feature of a capital-guaranteed fund is that no matter whether the market rises or falls sharply, it provides the function of at least recovering the investment cost after a number of years (usually three years). On the other hand, it has the potential to rise.