Financial management, as its name implies, is the management of finance, including assets and liabilities, with the purpose of maintaining and increasing the value of finance. The concept of financial management originated in America. At first, it was just a brand-new marketing strategy adopted by insurance staff to promote the company's goods. Due to the continuous advancement of financial reform and the rapid increase of personal financial assets, the development of financial management has been promoted. We need to review our assets first; Set the financial target, and make it clear qualitatively and quantitatively from the specific time, amount and description of the target; Find out what type of risk preference is, allocate strategic assets, allocate assets among all assets, and then choose investment varieties and investment opportunities.
The classification of financial investment includes: savings deposit, stock investment, real estate investment, fund investment, bond investment, gold investment, foreign exchange investment, insurance purchase and treasure collection.
Funds, usually securities investment funds, are issued by fund management companies, which pool investors' funds and are managed by fund custodians. Funds operated by fund managers mainly invest in financial instruments such as stocks, bonds and money markets to share the benefits. The simple understanding is that ordinary investors are not good at buying and selling stocks, or they want to buy and sell too many stocks that individuals can't buy. They give money to fund companies, and investors buy index funds containing these constituent stocks according to their fund shares, similar to group buying.