Judging from the risk-return distribution of various funds, basically, the higher the proportion of stock assets, the wider the annualized income distribution (vertical axis) and the greater the risk (horizontal axis).

This distribution is reasonable and interesting. Three things are proved: first, asset allocation determines most risk-return characteristics; Second, the rights and interests are not matched, and the income is difficult to increase significantly; Third, only distribute rights and interests. If the fluctuation is too large, it may go far.

Fixed income investment

Fixed income investment mainly includes bonds and money market instruments. Both of them have relatively stable income characteristics and low risk. Unless there is a sudden credit default risk and liquidity risk, you can generally get a fixed expected return.

Bonds include common national bonds, local government bonds, financial bonds and corporate bonds. The credit rating of these products will decrease in turn, and the risk and return will also change accordingly.

Money market instruments represent low-risk securities with high liquidity within one year, including some commercial bills, bank acceptance bills, central bank bills and bonds within one year.