Equity funds will also perform better due to their professional financial management and diversified investment characteristics. With the inflow of hot money brought about by the appreciation of the RMB and the gradual increase in inflation, it is recommended to increase holdings of stocks and shares in the early stages of interest rate hikes. For equity funds, positions can be appropriately lightened after profits are made later. Bank financial products with floating income: reasonable allocation It is reported that as the central bank continues to tighten the credit scale and the expectations of interest rate increases continue to increase, the structure of bank financial products has become increasingly comprehensive. Since the China Banking Regulatory Commission imposed restrictions on banks' use of their own credit assets to renew credit financial management products at the end of last year, the scale and number of credit financial management products have been shrinking since 2010. Wang Can recommends that clients reasonably allocate floating income financial products based on their own risk preferences. Bond Products: Avoid Long-term Bonds Bonds are interest rate sensitive products, especially long-term bonds. Wang Can believes that interest rate increases will cause bond prices to fall, so it is recommended that investors choose short-term bonds when investing in bonds and avoid long-term bonds. As bond funds, due to different investment portfolios, their risk returns and sensitivity to interest rates are also different. For example, short-term debt funds and longer-term debt funds have low interest rate sensitivity and low risks. Since the configuration of strong bond funds is equipped with products such as stocks and convertible bonds, the risks and returns are higher than that of pure debt funds. Insurance products: Participating insurance has obvious advantages. Bank insurance products are divided into participating insurance products, universal insurance products and investment insurance products. Since the dividend rate of participating insurance mainly depends on the operating conditions of the insurance company that year, it is uncertain. However, the dividend rate of participating insurance will be linked to the interest rate of bank savings deposits to a certain extent. Therefore, under the premise of increasing expectations for interest rate hikes, the interest rate linkage characteristics of participating insurance make participating insurance have obvious investment advantages during the interest rate hike cycle. Wang Can suggested that citizens can appropriately allocate participating insurance.