The differences between prudent financial management and funds mainly include different expected returns, different risks and different investment directions of funds. Generally speaking, the expected return of prudent financial management is lower than the expected return of the fund. The following small series brings the difference between sound financial management and funds. I hope you like it.
1. What's the difference between sound financial management and funds?
The difference between prudent financial management and funds is mainly reflected in expected income, risk degree, buying threshold, investment direction and liquidity of funds.
1, expected return
The expected return of prudent financial management is relatively low, with the general annualized interest rate around 4%, while the expected return of funds is much higher than that of prudent financial management. Different types of funds have different expected returns, with annualized gains of 20% and losses of 20%. Overall, the expected return of prudent financial management is lower than that of the fund.
2, the size of the risk.
The risk of prudent financial management is relatively low, which belongs to medium and low risk, but the risk of funds is higher than that of prudent financial management, and funds generally belong to medium and high risk.
3. The threshold of purchase
Generally speaking, the buying threshold of prudent financial management is relatively high, such as certificates of deposit, government bonds, reverse repurchase, time deposits, insurance financial management and so on. Many of them have higher thresholds. Generally speaking, certificates of deposit require a minimum deposit of 200,000 for individuals, and the starting point of insurance financing is also relatively high. However, the threshold of funds is relatively low, and many funds can be purchased for one yuan.
4. Investment direction of funds
Most of the funds for prudent financial management are invested in projects with stable income, but the funds are different. According to different investors, funds can be divided into different types, such as money funds, bond funds and equity funds. The investment direction of bond funds is mainly bonds, while the investment direction of stock funds is mainly stocks.
5. Liquidity is different.
Most prudent financial management has a certain term, after which the principal and interest are repaid, and the liquidity in the middle process is weak. Funds can be divided into closed-end funds and open-end funds. In open-end funds, funds can be purchased and redeemed at any time, and some funds can be traded in the secondary market, so the liquidity of funds is stronger than that of sound financial management.
Steady financial management refers to financial products with low risk, small income fluctuation and relatively safe principal. Steady financial management is more suitable for conservative investors with low risk ability and cautious attitude towards risk.
According to different risk levels, financial management can be divided into five types: cautious type, steady type, balanced type, aggressive type and aggressive type, in which prudent type corresponds to low risk, steady type corresponds to low risk, balanced type corresponds to medium risk, aggressive type corresponds to medium risk and aggressive type corresponds to high risk, which are R 1 to R5 respectively.
Second, which income is high?
Relatively speaking, the expected return of the fund is higher than that of sound financial management, because the risk of the fund is greater than that of sound financial management, and high return and high risk are corresponding. Steady financial management is mainly reflected in the word "steady", which generally puts safety first. In fact, prudent financial management is relative, because different people have different attitudes towards risks. Some people think that as long as funds can run faster than inflation, it is good not to depreciate. Some people think that the fund is also a relatively stable product. In fact, the money fund in the fund can also be regarded as a stable wealth management product. There are differences and connections between prudent financial management and funds.
How to make rational use of retail investors?
The 5-day moving average refers to the average transaction price or index of a stock for 5 days, which corresponds to the 5-day moving average of the stock price and the 5-day moving average of the index (5MA). The moving average is actually the abbreviation of the moving average index, which is an important indicator to reflect the price trend. The high point and low point formed by trend operation are pressure point and support point respectively, which has important reference significance for investors' trading points.
The 5-day moving average is an important trend line of the short-term trend of the stock market. The stock price above the 5-day moving average is bullish in the short term, so you can buy it (don't chase after it). The short-term bearish stock price below the 5-day moving average can be tracked and observed. When the 5-day moving average of a stock crosses the golden fork formed by the long-term moving average, it is a buying signal, and when the long-term moving average of a stock crosses the dead fork formed by the 5-day moving average, it is a selling signal.