First of all, I would like to tell you about the fixed investment of index funds that may be familiar.

Friends who have learned about the index changes in the past will find that the A-share index is generally rising, because the stock market is a barometer of the development of the national economy. As long as our economy keeps moving forward, the index will continue to rise.

Therefore, in the whole investment and wealth management circle, most friends think that the risks and benefits of investing in index funds are ok, and in the long run, the annualized income of about 10% can be realized.

However, it should be noted that there are many kinds of index funds, among which the fund tracking the market index is more suitable for novices, and the fixed investment cycle is also relatively long, generally around 3 -5 years.

The latest index valuation of a platform

In terms of investment scope, index funds belong to stock funds, and the risks and returns are relatively high compared with money funds and bond funds.

However, compared with other stock funds, the stocks purchased by index funds are all part of their tracking index, which is basically fixed, reducing the drastic changes caused by other uncontrollable factors such as human activities.

Moreover, there are many stocks, so even if a stock fluctuates greatly, the proportion is limited relative to the whole, so the loss of investors is relatively small. Of course, if a stock gains a lot, it will also be limited by the proportion, so the return may not be the highest in a certain period of time.

This is why more experienced friends will buy other active financial products besides investing in index funds.

However, at the beginning of our exposure to high-risk wealth management products, the research and understanding of index funds is basically enough.

There is a big reason why investors recommend index funds, besides the risk and the index they track: the low rate.

The management fee of active stock funds is generally around 1.5%, and the management fee of passive stock funds (index funds) is generally around 0.69%. Whether it is custody fee, sales service fee or subscription rate, index funds are far lower than active funds.

Low tax rates correspond to more income.

In addition, it should be noted that buying is easy to redeem, and many friends who have invested in index funds suffer from not knowing how to choose the redemption opportunity (the so-called final profit).

Cai Xiao introduced a method: target income extraction method, that is, you can redeem your own financial target income (such as 15% or 20%).

Two. Convertible bonds and new shares

In addition to the fixed investment index, the conversion of convertible bonds and new shares can also achieve an annualized income of 8%- 10%.

What does convertible bond mean? How to invest convertible bonds? This paper introduces the basic knowledge of convertible bonds. If you have rich investment experience and in-depth research on convertible bonds, you can try to buy and sell convertible bonds in the secondary market. Otherwise, it is recommended to participate in the new convertible bonds and then sell them in the market.

For example, recently, Taijing Technology released the news of early redemption on the evening of March 6, which sounded the alarm for investors who took over at a high level.

The coupon rate set by Taijing Technology when issuing the convertible bonds was 0.4%, while the closing price of Taijing convertible bonds was 364.94 yuan on March 6, which means that if the friends holding Taijing convertible bonds did not sell or convert their shares, they could only accept the price of 100.4 yuan, which was recovered by the listed company, resulting in 73% losses.

Price trend chart of Taiwan Economic Convertible Bonds in recent 5 days

However, if you convert shares, not to mention the time requirement (generally, convertible bonds can not be converted until half a year after listing), but as far as conversion is concerned, if you hold 65,438+07.90 shares of Taijing Technology convertible bonds, you can convert them into nearly 56 shares of Taijing.

Number of shares after conversion = face value of convertible bonds (100 yuan) * number of convertible bonds (10)/ conversion price (17.9 yuan).

Then, using the number of shares * the current stock price, we can calculate the funds that can be realized immediately after the conversion, which is about 134 yuan, which is 63% lower than the conversion price of 364.94 yuan.

So many friends fled on March 7. As of the close, the quoted price of the Thai convertible bonds was 190.92 yuan, a decrease of nearly 48%. However, the closing price of Taijing convertible bonds rebounded today, and the quotation was 193.83 yuan.

Today's rise may be due to the uncertainty of the specific time of Taijing convertible bond redemption plan. The news of early redemption released by Taijing Technology may be just to cool down Taijing convertible bonds, or it may be because some investors still have hope and feel that they can lose less.

In any case, the cost determines the mentality. If you get a Thai convertible bond through a new loan (100 yuan/piece), your current mentality will be very stable and you can settle down at any time. However, if you buy on Thai convertible bonds and the price rises to a certain extent, you will probably be more flustered now and are now choosing the loss range.

Therefore, Du Xiaoman's financial analyst suggested that when investing in convertible bonds, you must choose according to your actual investment experience and knowledge reserve. At the very least, you should fully understand its risks first.

It takes 22 days to play new shares with a market value of more than 1000 before playing new shares, and the winning rate is lower than that of convertible bonds, so Cai Xiao will not be shared here.

Finally, I would like to remind you that investment is risky and you need to be cautious when entering the business. No matter what products, we should try to avoid high-level takeover.