With the continuous development of economy, more and more people begin to pay attention to financial management. So what is a quality asset? What are the common investment methods? Xi Caijun also prepared relevant contents for your reference.
what is a quality asset?
High-quality assets refer to those assets that can generate cash flow or value growth stably, continuously and efficiently, and generally have the following characteristics:
1. Earnings can outperform inflation. The yield of high-quality assets should be higher than the inflation rate, otherwise it will lead to the decline of actual purchasing power and harm the interests of investors.
2. Suitable for long-term investment. High-quality assets usually have long-term vitality and will not lose value or be eliminated because of short-term market changes, technological updates, policy adjustments and other factors. In addition, high-quality assets generally have a stable source of cash flow, or have a steady potential for value growth, and will not affect investors' expected returns because of short-term fluctuations.
3. Good liquidity and low liquidation cost. High-quality assets can usually be bought, sold or transferred conveniently, and the flexibility of investors will not be affected by transaction costs or restrictions.
what are the common investment methods?
1. Make a bank deposit. Deposit is a relatively simple and low-risk investment method, which mainly includes demand deposits, time deposits, structured deposits, bank certificates of deposit and so on. The advantage of bank deposit is that the deposit principal is guaranteed by deposit insurance, and even if the bank defaults, investors can get some compensation.
2. Buy funds. Fund is a collective investment method, which can realize the enjoyment of income and the bearing of risk. There are many kinds of funds to choose from, such as money funds, bond funds, stock funds, hybrid funds and index funds, which are suitable for investors who want to manage their finances but lack professional knowledge.