Pro: The advantages of bonds are fixed interest and low risk. As long as the government or enterprises do not encounter a major crisis, they will generally cash out. In addition, bonds are relatively liquid and can generally be transferred in the open market.
Disadvantages: The disadvantage of bonds lies in their poor anti-inflation ability. What consciousness? The interest rate of bonds is generally agreed, such as 8% per year. If the inflation rate is 9% this year, it is obvious that bonds have actually depreciated. Another disadvantage is that bonds are only bond certificates and have no actual management rights.
2. Stock-A stock is a certificate of rights and interests issued by an enterprise. The owner of the stock owns a share of the company, which has no time limit and has no right to ask the company to redeem it. Stock owners usually make money by rising stock prices or buying low and selling high to earn the difference.
In favor: the advantages of stocks are obvious, such as company ownership, strong liquidity, simple transfer and high long-term yield. Generally speaking, the long-term yield of the stock market is in the early stage of 10%.
Disadvantages: stocks have two disadvantages. The first is the risk of stock price decline, and the second is the risk of company operation. For example, LeTV or Bao, the company encountered a major crisis, with a continuous limit of more than a dozen. Shareholders can only bear it silently. If the company goes bankrupt or withdraws from the market, the risk must be borne by itself. Moreover, making money in the stock market is not a simple matter. At least big data analysis shows that there are a few people who make money in the stock market, which may account for one tenth. So for the average person, making money in the stock market is a small probability event.
Third, the fund-the fund is that you give money to the fund company, and some fund companies find special fund managers to invest. Funds can be divided into money funds, bond funds, mixed funds and stock funds according to investment targets, and their risks increase in turn. Accordingly, the expected rate of return has also increased in turn. The expected rate of return of the money fund is around 4%, and there is basically no risk; Bond funds are at 7%-8%, with less risk; The long-term average return of equity funds is in the early stage of 10%, which is risky.
Benefits: simple operation, professional management, flexible deadline and diverse choices.
Disadvantages: Because there are many kinds of funds, its shortcomings cannot be generalized. For example, the disadvantage of money fund is low income, and the disadvantage of stock fund is high risk, unstable income and possible risk of loss.
Compared with stocks and bonds, securities investment funds have the following differences:
(1) Investors have different status. Shareholders are shareholders of the company and have the right to express their opinions on major decisions of the company; The bondholder is the creditor of the bond issuer and has the right to recover the due principal and interest; The fund unit holder is the beneficiary of the fund, which reflects the trust relationship.
(2) The degree of risk is different. Generally speaking, the risk of stocks is greater than that of funds. For small and medium-sized investors, due to the limitation of the total amount of disposable assets, they can only directly invest in a few stocks, which violates the investment taboo of "putting all the eggs in one basket". When the stock they invest in falls due to the stock market or the financial situation of the enterprise deteriorates, their capital may be wiped out; The basic principle of the fund is portfolio investment, risk diversification, and investment in securities with different maturities and types in different proportions to minimize risks. Under normal circumstances, the principal of the bond is guaranteed, the income is relatively fixed, and the risk is smaller than that of the fund.
(3) The income situation is different. The returns of funds and stocks are uncertain, while the returns of bonds are certain. In general, the fund's income is higher than that of bonds. Taking American investment funds as an example, the income growth rate of 25 kinds of funds, such as international investor funds, is 301976 ~1981.6% on average, among which the growth investor funds in the 20th century have the highest rate of 465% and the lowest rate of 243%. However, the interest rates of two kinds of five-year government bonds issued in China 1996 are only 13.06% and 8.8% respectively.
(4) Different investment methods. Unlike investors in stocks and bonds, securities investment funds are an indirect way of securities investment. Fund investors no longer directly participate in securities trading and bear investment risks, but experts are specifically responsible for the determination of investment direction and the choice of investment objects.