Investment and financial management means that investors manage and allocate the assets of individuals, families, enterprises and institutions by reasonably arranging funds and using investment and financial management tools such as savings, bonds, funds, stocks and futures to achieve the purpose of maintaining and increasing value. The word first appeared in newspapers in the early 1990s. Here, I want to share with you some goals about investment and financial management, hoping to help you!
What is investment and financial management?
Investment and financial management means that investors manage and allocate the assets of individuals, families, enterprises and institutions by reasonably arranging funds and using investment and financial tools such as savings, bank financial products, bonds, funds, stocks, futures, foreign exchange, real estate, insurance and gold, so as to achieve the purpose of maintaining and increasing the value, thus accelerating the growth of assets.
Investment and financial management is not simply saving money, saving money and putting it in the bank, nor is it simply trading stocks (buying and selling stocks). Investment and financial management is a comprehensive, systematic and comprehensive economic behavior that actively plans, arranges, replaces and reorganizes all assets and liabilities, including tangible, intangible, mobile, non-mobile, past, present, future, legacy, will and intellectual property rights, according to needs and purposes, so as to preserve and increase their value. The former is just a specific behavior of investment, at best, using cash. As a part of investment and financial management, cash management is much more complicated and difficult.
Investment types in financial management
According to different investors, investment and financial management can be divided into personal investment and financial management, family investment and financial management of enterprises/institutions.
Personal and family investment and financial management is an economic behavior aimed at meeting the needs of personal and family progress, which runs through our life.
The difference between enterprise/institution investment and financial management and individual and family investment and financial management is that the ultimate goal is for the long-term progress of the enterprise or institution, and the main body of investment and financial management is the organization or its representative, which is for the benefit of the organization.
The goal of investment and financial management
In the modern sense, investment and financial management includes three goals: preservation, appreciation and safety. Preserving value refers to keeping the original value of assets unchanged, and it is urgent to avoid the crisis of inflation; Value-added refers to increasing the total assets on the basis of the original assets; Safety refers to preventing all kinds of sudden crises that life and property may face in the future.
Principles to be followed in investment and financial management
First of all. We must establish a correct sense of crisis. The market is not a special "cash machine" for investors to make huge profits, and its crisis is everywhere.
Second, your source of funds should be as healthy as possible and have a strong ability to withstand the crisis. If the funds obtained from mortgage, pawn, loan and even usury are invested in financial management, these funds will certainly contain investors' crazy expectations of excess profits, that is, speculators, but we do not advocate adventure speculation.
Third, we should have a peaceful attitude towards the expectation of future income. Only by setting reasonable expectations and choosing varieties suitable for their own crisis tolerance can investors realize the controllability and rationality of investment income. For stock investors. Abandon the impulse of getting rich overnight, choose the right time to buy the right stock, throw it at the right time, and make a profit with the growth of the enterprise.
Fourth, there is no end to learning. It is never too old to learn. Many new investors have just opened accounts and are at a loss about the market. Many investors are tortured but have no clue, either by stock evaluation, forecasting software or through gossip. In this state, expecting stable or excess returns is tantamount to seeking fish from the edge of the tree.
Fifth, we must adhere to the concept of value input! Share reform can be said to be the rebirth of China's capital market. Since then, the long-term progress of the enterprise has become the pursuit of all shareholders, so the stock selection strategy has a solid market foundation. In this context, we should establish the concept of value input, choose enterprises over technology, and fight against crisis over making money first. Only by adhering to the concept of value input can making money become a natural result.