With the development of China's economy, the improvement of people's living standards and the continuous increase of family financial assets, investment and financial management has become an increasingly important issue. Family investment and financial management is an effective investment in personal wealth in view of risks, which can preserve and increase wealth and resist economic risks in social life, whether it is savings investment, stock investment, foreign exchange investment or insurance investment. Due to the increasing variety of investment, the required professional knowledge is not the same. It is also difficult to fully grasp the investment methods. Family's asset selection, combination and adjustment behavior refers to the family's demand preference and investment tendency for one or more assets. This paper analyzes this behavior of family investment and financial management, analyzes the winning way of family investment and financial management, and its risks and avoidance, hoping to help the practice of family investment and financial management. First, the choice of family investment and financial management

(A), the necessity of family investment and financial management choices

Family investment is first faced with the choice of investment methods and fields. Generally speaking, they should consider the returns and risks of assets and their mutual constraints, choose one or more assets and decide the number and proportion of their investors. Before the reform and opening up, in the eyes of most ordinary people in China, "investment and financial management = bank = savings office", and personal financial management investment only brought "saving money to generate interest". Nowadays, ordinary people not only have the ability to wear gold and silver, but also have disposable income of tens of thousands of yuan. New investment varieties have gradually become an important part of personal investment and financial management. Financial futures, financial options and other emerging personal investment and financial management tools emerge one after another, which have had a great impact on modern personal financial management portfolio. Among many asset selection methods, it is an asset selection strategy under the condition of market depression to guide families to take advantage of the depression of capital market in time, raise social hot money at a lower cost and choose a way suitable for them to make rational investment.

For example, before 2006, China's stock market was very depressed. Many clear-headed and far-sighted investors dare to borrow money from relatives and friends to raise unexpired certificates of deposit. They use certificates of deposit for bank mortgage loans and deposit loans and borrowed funds in banks to buy stocks. Due to the accurate investment timing and proper investment methods, the result is less than one year. In the second half of 2006, the stock market prospered, and their return on share purchase reached 10. Theoretical and empirical analysis shows that most of the criteria for families to choose assets are to bring new income or increase the relative amount of recent income. Diversify investment according to financial resources and ability, but avoid blindly following the crowd and borrowing money to invest. Financial investment instruments are generally divided into conservative types such as bank deposits and growth types such as bonds and funds. High-risk and high-yield products such as futures, foreign exchange and real estate; Professional knowledge of stamp products, jewelry, antiques, calligraphy and painting. Try to diversify your investment, but remember not to blindly follow the crowd. You should give full play to your personal advantages, diversify your investment as much as possible, and get the maximum benefit.

(B) diversification of family investment and financial management

At present, new investment varieties have gradually become an important part of personal investment and financial management. Financial futures, financial options and other emerging personal investment and financial management tools emerge one after another, which have had a great impact on modern personal financial management portfolio. At present, the main types of family investment management are:

1. Bank deposit. For ordinary people, deposit is the most basic way of investment and financial management. Compared with other investment methods, deposits have many advantages, such as variety, flexibility, stable value-added and safety. After deciding to make savings deposits, investors are faced with the choice of deposit term structure. Whether investors choose demand deposits or time deposits mainly depends on the future income and expenditure, as well as the expectation and grasp of other better investment opportunities in the future.

2. Stock investment. Among all investment tools, stock (common stock) can be said to be one of the investment tools with the highest yield, especially from the perspective of long-term investment, no publicly listed investment tool provides higher returns than common stock. Stock is a certificate issued by a joint stock limited company to shareholders to raise its own capital. It is a certificate representing the ownership of equity, and it is a valuable securities for shareholders to get dividends and bonuses. Stock has become an important target of family investment.

3. Investment funds. Many people want to invest in the stock market, but they don't know how to choose the right stock. The most ideal way is to entrust experts to make investment choices. This investment method is the fund. Investment fund refers to an investment tool that raises a large amount of uncertain social idle funds in the form of trust, contract or company, forms a certain scale of trust assets, and hands them over to professionals of specialized institutions for diversified investment according to the principle of portfolio, and shares the income according to the proportion of capital contribution. Compared with other investment tools, the advantages of investment funds are expert management, scale advantage, risk dispersion and considerable income. Buying investment funds by families is not only less risky, but also saves time and trouble. It is the best investment tool for family investors who lack time and have professional knowledge.

4. Bond investment. Bonds are between savings and stocks, with higher interest than savings and lower risk than stocks, and are more suitable for middle-income families with more idle funds. Bonds have the characteristics of fixed term, repayment of principal and interest, transferability and stable income, and are deeply welcomed by conservative investors and the elderly.

5. Real estate investment. Real estate refers to real estate and real estate, that is, houses and land. Because buying real estate is a very important investment for every family, families should make good financial planning if they want to invest in real estate; Reasonable arrangement of housing funds, always pay attention to the changes in the real estate market, in order to sell cash when the price rises sharply and get the difference. Among all kinds of investment methods, the advantage of investing in real estate is that it can preserve value. When inflation is relatively high, it is also a period of rising real estate prices. Moreover, real estate can be used as collateral to obtain loans from banks; In addition, investing in real estate can be left to children as a family business.

6. Insurance investment. The so-called insurance refers to a way in which an insurance company collects a certain premium from the insured according to regulations, establishes a special insurance fund and provides economic compensation to the insured in the form of a contract. Insurance is not only a preparation in advance and a remedy afterwards, but also an investment behavior. The premium paid by the insured in advance is the initial investment of this investment; After the insured has the right to claim compensation, he can get economic compensation from the insurance company in case of disaster or accident or security needs, that is, "investment income"; Insurance investment has certain risks. Only when disasters or accidents occur and cause economic losses can economic compensation be obtained. If there is no relevant situation during the insurance period, the insurance investment will be completely lost. Family investment insurance mainly includes family property insurance and personal insurance. At present, the types of life insurance products introduced by major insurance companies, such as disguised capital hook or dividend, make insurance have dual functions of investment and protection. Insurance investment is not the most important in family investment activities, but it is the most necessary.

7. Futures investment. Futures trading refers to the trading form of a standardized contract in which buyers and sellers pay a certain amount of margin and deliver a commodity with a specific quality and specification at a specific time and place in the future through an exchange. Futures trading is divided into commodity futures and financial futures, so we should be cautious in the choice of futures trading.

8. Art investment. Overseas, art has been listed as the three major investment targets alongside stocks and real estate. Compared with other investment methods, artworks have the following advantages: First, the investment risk is small. Art is non-renewable, so it has a strong function of preserving value. In the short term, the market fluctuation is not very large, and investors can control their own destiny, so it is safe. Second, the rate of return is high. The nonrenewability of artworks leads to the strong appreciation function of artworks, so the return on investment of artworks is high. But at the same time, the defects of art investment are also very prominent: First, lack of liquidity. Once you buy art, you may not be able to sell it in a short time. The cycle between buyers and sellers may be as long as several years, decades or hundreds of years, which is unrealistic for ordinary families with relatively poor funds. Second, under normal circumstances, the identification of works of art requires strong professional knowledge, and families and individuals who do not have the ability to identify are still cautious. Second, the combination of family investment and financial management.

Whether it is financial assets, physical assets or industrial assets, there is a problem of reasonable combination. From holding one asset to investing in more than two assets, from owning only one non-systematic single asset to owning a systematic portfolio asset, this is an important symbol of the maturity of family investment and financial management behavior in China. Many families have realized that the pursuit of family investment portfolio with practical economic value is not to maximize the utility of a single asset, but to maximize the utility of the overall portfolio. Because assets are substitutable and complementary, the substitutability of assets is reflected in the demand between various assets.

Changes in relative prices, public investment preferences, and even income expectations may all present a trade-off relationship. The complementarity of assets shows that the demand change of one asset will cause the demand change of another or several investment products, such as the linkage relationship between housing, building materials and decoration industries. Therefore, from an economic point of view, it is not difficult to prove that holding an asset too much will have a counter-effect, the utility of holding it will decrease, the cost will increase, the risk will increase, and the final income will decrease. This is not conducive to the realization of family investment goals, but the satisfaction degree of assets obtained by families is far greater than that of single assets, which can often be reflected in the holding cost, transaction price, expected income, safety and so on. For example, when the market is in a downturn, the general investment market and the collectible market are in a downturn at the same time, but the market weakness of housing market, postal market, card market, foreign exchange market, stock market, gold jewelry and antique treasures is not the same. Some may be lower than the face value or cost price, and some may maintain a higher price. At this time, clear-headed and discerning investors will choose which varieties with great appreciation potential among the above asset forms to combine in time. Many families in our country can not only use the general investment skills of portfolio more freely, but also pay attention to the substitution and complementarity of asset bath in investment projects, so as to combine long and short, complement varieties, take into account long-term investment and short-term speculation, and also use the skills of entering and leaving the market freely. Self-owned funds and other people's funds cooperate with each other, which greatly improves the income of family investment and financial management. This is a better way to combine assets.

Asset investment needs combination, so as to be profitable and avoid risks. Many families understand this truth and put it into their own investment activities. However, through a large number of empirical analysis, we find that many families simply "make do" together by adding several investment varieties, without considering how to combine assets to achieve proportional convergence and integration. Portfolio is actually a series of activities to optimize family property structure and asset structure and change short-term low-income portfolio into long-term high-income portfolio. Some families, mainly middle-aged and elderly families, do not have a strong sense of investment in their portfolios, and their willingness to preserve their value makes their assets excessively concentrated on low-risk and low-yield varieties. For example, savings may account for more than 85% of bank and financial assets, and the proportion of securities investment is too small. Their family's physical assets mostly choose durable consumer goods with strong consumption nature, which is a typical low-income asset portfolio; There are also families with young couples as an important part, whose family investment is excessively concentrated in high-yield and high-risk varieties, and the family investment portfolio that pursues speculative profits is obvious, such as over-investment in stocks, futures, corporate bonds and foreign exchange. And even participate in various social fund-raising to seek high profits. Once they miss it, they may often lose their money. This is also an inefficient way to combine assets. Although other families have realized the coexistence of high returns and high risks, and started to combine investment projects according to multiple varieties and maturities, they are not fully aware of the dual functions and interrelationships of investment and speculation, the market segmentation and transformation of investment projects, and the relationship between their own assets and others' assets, which is also an inefficient asset combination method.

Third, adjust family investment and financial management.

The combination of assets should always be in the state of maximizing benefits for a long time. The combination of assets can't be just a short-term static profile, but a dynamic nonlinear process, which is a process of constantly revising and perfecting the implemented combination plan after making reasonable expectations for various market factors. Therefore, the portfolio is actually a function composed of a series of variable factors, and the basis of sustained, reasonable and effective adjustment is that the basic variables that determine this function are a series of uncertain factors: for example, when families invest in the portfolio with insufficient information, the contradiction between the infinity of information and the finiteness of information possession always exists, the imbalance of the capital market is frequent, the equilibrium is accidental and instantaneous, and the market expectation is difficult. In addition, the uncertainty of government intervention is greater. The government intervention in China's investment market is strong, and sometimes the basis for intervention is insufficient. The subjective existence of randomness makes families pay attention to the objective economic operation trend and often speculate on the government's policy intervention in the capital market to determine the investment portfolio and adjustment. For example, the ups and downs of China stock market and its basic running trend are often related to policy intervention.

Asset adjustment basically reflects the family's requirements for their own asset balance expectations. In the process of investment adjustment, when families decide the interdependence of various assets and reasonably construct their own asset demand function, they should first consider the equilibrium state of asset composition, which is based on the supply and demand relationship of the market, the determined asset preference and the ability to pay income, and then find the optimal asset composition and realization method, followed by reasonable expectation of asset changes. So that the income not only meets the principle of maximum income and minimum risk in the short term, but also meets the requirement of maximum asset efficiency in the long term. According to the asset selection and adjustment theory of western economics, the order of asset portfolio is to select risk-free assets first, then select assets with general risks and returns, and finally add assets with higher risks and returns. This kind of asset adjustment is carried out according to the requirements of risk and return, which conforms to the hierarchical and systematic requirements of asset portfolio.

Recognizing the status of families as important subjects in the investment market, recognizing that their investment behavior is maturing, and giving them more choices of investment products, especially expanding channels and varieties from different aspects such as safety and liquidity, are problems that the government should further solve from a macro perspective. Taking the diversified provision of financial assets as an example, in the provision of financial instruments, can we consider adding preferred shares and other types in addition to ordinary shares, and can we increase the varieties on the basis of existing national debt and expand the issuance scale of financial bonds and corporate bonds? In addition, financial derivatives include stock futures, index futures and bond futures. , should not refuse. Derivatives are speculative and risky, but good management and standardization also reduce risks. The use of derivatives has become very common in developed countries.

Fourth, how to obtain the income from family investment and financial management:

At present, the investment and financial management effect of many families is not ideal, and some even cause serious losses due to investment mistakes and improper financial management. So, how to invest in family finance, in order to get the expected income? The author discusses that (1) investment and financial planning should adhere to the "three principles"-safety, profitability and liquidity. The so-called security is to invest family savings in a way that not only will not lose money, but also the purchasing power will not be reduced due to inflation. This is the first principle of family investment and financial management. The so-called income wow, there must be value-added after investing family savings. Of course, the more profits the better. This is the fundamental principle of family investment and financial management. The so-called liquidity, that is, liquidity, the use of family savings funds should consider its ability to convert into cash, that is, when the family is in urgent need, the money can be recovered, which is the condition for family investment and financial management. For example, gold, active stocks, some bonds and bank certificates of deposit are highly liquid, while real estate, jewelry and other real estate, insurance and welfare are less liquid.

(two), to understand and master the knowledge of related fields and disciplines. In the process of family investment and financial management, it will involve portfolio investment such as financial investment, real estate investment and insurance plan. Therefore, first of all, we should understand the functions and characteristics of investment tools, choose investment tools such as savings, bonds, stocks, insurance and real estate with different risks according to personal investment preferences and family assets, and make effective investment plans to avoid risks and reduce losses to the maximum extent. Understand national current affairs, master macroeconomic policies and relevant laws and regulations. Family investment is inseparable from the national economic background, and macroeconomic orientation directly restricts the performance of investment tools and the market profit space; At the same time, understand the laws and regulations of the country, legalize investment, do not participate in illegal financing activities, and increase income through reasonable tax avoidance as much as possible.

(3) Family investment and financial management should be rational, carefully planned, and always keep a cool head.

How to scientifically manage how to properly accumulate wealth in all stages of life and manage wealth in a planned and systematic way is an essential financial management concept for modern families. (1) Establish liquidity. The scale of working capital should usually be equal to three or six months' household income to prevent sudden and unexpected emergency expenses. The reasonable investment channels of working capital should be bank time savings deposits, short-term treasury bonds and other realizable assets. (2) Establish an education fund. Nowadays, the cost of higher education has a significant upward trend. If the predicted capital demand may be quite different from the actual demand ten years later, it is necessary to accumulate assets for a long time to ensure that assets are not eroded by inflation. At present, many financial experts advocate the way of regular fixed investment funds. You can choose a stock or partial stock fund with only growth potential and buy the same amount regularly every month to spread the time risk. (3) Establish a retirement fund. In the early stage of preparing for retirement, the investment strategy should be based on profit and bear relatively high risks; The closer retirement is, the more important the protection of retirement funds will be, and insurance will further increase the investment in endowment insurance.

(4) Calculate "life risk tolerance" and invest according to your ability. The so-called "life risk tolerance" refers to the length of time that family life can last in the case of serious accidents in family income. Therefore, it is necessary to increase the personal insurance protection for the main income earners, especially for those family members who are financially unable to stand on their own feet, and make plans for them for a period of time to avoid leading a normal life when the main income earners have accidents; In addition, in the process of normal life, we should also reserve living expenses that can last for about 3 months, and then choose to invest in case of emergency; At the same time, don't invest too much to reduce the quality of life.

Five, the risk of family investment and financial management and its avoidance:

All investments have risks, but the risks are different, so is family investment. Risks that may be encountered in family investment and financial management: Risk refers to the possibility of adverse effects on the investment process due to various uncertain factors. Once there are adverse effects or adverse results, it will cause losses to investors. Risks are divided into systematic risks and unsystematic risks. Systematic risks are mainly caused by changes in the political and economic situation, such as major adjustments in national policies and changes in economic cycles. Non-systematic risk is mainly caused by the factors of the enterprise or a single asset itself. The risks of family investment mainly include: policy risk, which refers to the risks brought to investors by the introduction, implementation or adjustment of national economic and financial policies. Legal risk refers to the risk caused by financial investment violating national laws and regulations. Market risk refers to the risk caused by market changes. Institutional risk refers to the risk brought to investors by poor management of financial institutions. Fraud risk refers to the risk that a family is cheated in the investment process. Operational risk refers to the risk caused by improper operation in the process of family financial investment.

(1) Create a financial file. In today's frequent family financial activities, it is difficult to remember all the financial information clearly only by the human brain, which has caused a series of problems: some valuable securities such as bank deposit certificates have been stolen or lost, but they cannot report the loss to relevant financial institutions because they cannot provide relevant information; Some investors buy and sell stocks without bookkeeping. After the listed companies issued shares for many times, they didn't know how many shares were left in their accounts, and even missed the opportunity to sell at a high price and earn more. Some misplaced insurance documents such as family property or personal accidental injury. Once something really happens, it is difficult to get insurance company claims because the insurance documents cannot be found, and so on.

As long as the family financial case is established, these problems can be completely avoided. The establishment of family financial files can mainly start from the following three aspects: First, clarify the contents of the files. (1) Names, account numbers, deposit amounts, deposit dates and withdrawal passwords of various bank deposits and book-entry certificates of deposit for securities; (2) Stock trading records. (3) various insurance certificates; (4) proof of mutual borrowing between individuals; (5) Various financial information, such as bank deposit interest rate, issuance and redemption information of national debt, stock market information, etc. ; (6) Information on family investment and financial management methods and value-added skills. Secondly, master the filing method. If the family investment is small, you can write it down in a small book; If you invest a lot, you should establish a formal account book, distinguish the types, record the family financial content one by one, and record every financial activity; If the family has a computer, you can use this to store personal family financial documents in the computer for easy retrieval at any time. Thirdly, grasp the key issues: file entry should be timely, and financial data should not be lost because of misplacing; The content should be comprehensive, and all kinds of financial contents that should be filed should be completely filed; Archive important documents that are confidential and related to the safety of family funds, such as certificates of deposit (ID card, personal seal, withdrawal password, etc. ), should be filed separately, computer filing should be set password; Data should be updated, old data should be cleaned regularly, and new data should be stored so that files can be used as investment reference at any time; Use it frequently, read and study frequently, improve financial management skills and improve investment efficiency. At the same time, it is necessary to prevent deposits from being forgotten to be withdrawn at maturity and avoid the loss of family investment interests.

(2) Establishing Personal Credit The so-called personal credit refers to the record of keeping promises and repaying loans when individuals borrow money from financial institutions for investment or consumption. It is an indispensable passport for citizens in economic activities. At present, residents can establish personal financial credit in two ways: one is to use the opportunity of bank financial innovation to prove personal credit. In recent years, commercial banks have introduced credit cards and debit cards. If cardholders keep their promises and repay loans, they can establish personal credit. Second, establish personal credit with the help of intermediary service agencies. For example, Shanghai Credit Information Co., Ltd. provides personal credit joint credit information service for banks and individuals. Through the collection, consultation, evaluation and management of personal credit information, a personal credit file data center is established to provide supporting personal credit reports for citizens to apply for credit consumption. Residents should make use of such intermediary services to establish personal credit and obtain a "passport" to borrow money from a number of banks when investing or spending in the funeral court.

(3) Family investors should promptly identify the types and causes of risks actually encountered and take remedial measures in time. Risks caused by external reasons, such as passbook loss and password theft, should be reported to the bank in time; If financial fraud brings risks, we should take various ways and means to destroy them in time until we resort to the law to minimize the losses. Due to the risks brought by the changes of national macroeconomic policies, investment plans and investment schemes should be adjusted and revised in time. If the interest rate is lowered, the savings structure should be adjusted. If the capital market is depressed, adjust the structure of stocks, futures, funds and bonds.

Conclusion: Family investment and financial management is a systematic project in the family, which needs a lifetime of time and energy to plan and manage carefully. It is necessary to master the principles of financial management scientifically and reasonably, expand investment channels, use a variety of financial management tools, scientifically combine and spread risks, get out of the misunderstanding of financial management, and maximize the use of funds. In short, the healthy development of family investment and financial management, on the one hand, needs to strengthen the scientific planning of family financial management and establish suitable financial management methods, on the other hand, it also needs financial institutions to develop more and better financial management products, create a good investment environment, optimize the use of family investment funds, and improve their return on investment, so as to maximize the mobilization of funds held by families, maximize the efficiency of the use of family property, and truly make family investment and financial management an important support point for China's economic growth and promote China's economic stability.