Beginners to financial management can start with investments that have lower risks and relatively stable returns. Do not blindly pursue high-yield investment products without experience, because high returns also mean high risks. Here are some investment references suitable for novices in financial management.
1. Bank deposits
Bank deposits are the most common and least risky financial option. Mainly divided into demand deposits and time deposits. Bank deposits are a capital-protected investment option and are protected by deposit insurance.
Demand deposits can be deposited and withdrawn at any time, and the deposit interest rate is low. If the funds are needed at any time, you can choose the survival period.
Time deposits have a fixed deposit period. Investors deposit funds in the bank to obtain income according to the agreed period and interest rate. The deposit interest rates of different deposit terms and different banks will be different. Investors can compare more bank interest rates before making a choice.
Notice deposits have no fixed term, but the depositor must notify the bank in advance before withdrawing the deposit. It has the properties of both time deposits and demand deposits, with one day and seven days. The interest rate of notice deposits fluctuates according to changes in market interest rates. It is generally higher than the interest rate of demand deposits and lower than the interest rate of time deposits. However, the investment threshold for call deposits will be relatively high, and the minimum deposit amount for individual investors is 50,000 yuan.
The interest rates of several banks are listed as a reference, and the deposit interest rate inquiry website of major banks is attached: https://www.csai.cn/bankrate/.
2. Bank financial products
Banks have financial products with different risk levels, and investors can choose products based on their risk tolerance. The investment threshold of bank financial management is lower, the safety and stability are higher, and the rate of return will be lower than that of high-risk products. Bank financial management is not protected by deposit insurance, and there is a risk of principal loss, but most financial products have relatively small risks.
The interest rates, risks, and terms of different financial products will be different. When choosing financial products, investors can check more relevant information on the bank's official website, APP, counter, etc.
3. Monetary funds
It is an open-end fund that specializes in investing in money market instruments with low risk. It has the characteristics of high liquidity, low risk and low investment cost. Alipay's Yu'ebao and Lingqiantong in WeChat are both monetary funds, which are very convenient for investors to operate. Moreover, both Yu'ebao and Lingqiantong have principal guarantees. If there is a financial security problem, corresponding compensation will be obtained.
4. Fund fixed investment
Fund fixed investment is a financial management option that is more suitable for office workers nowadays. It can not only share the investment cost, but also avoid investing too much at one time. However, fixed investment in funds involves certain risks, and returns are affected by market fluctuations, and there is a possibility of loss of principal.
5. Invest in government bonds
Treasury bonds are bonds issued by the government and are mainly used to raise fiscal funds. Treasury bonds are backed by government credit, have low investment risks, and can enjoy certain tax benefits. The level of market interest rates will affect the returns on government bonds. The purchase of treasury bonds is also relatively convenient and can be purchased through the bank’s APP.
6. Treasury bond reverse repurchase
Treasury bond reverse repurchase refers to individuals lending their own funds through the treasury bond repurchase market and obtaining fixed interest income. The repurchase party, or the borrower, uses its own treasury bonds as collateral to obtain corresponding funds and repay the principal and interest upon maturity. Treasury repurchases are essentially short-term loans. Treasury bond reverse repurchase has the characteristics of low risk, low investment threshold, considerable and stable yield, low handling fee, and convenient operation.
There are a total of 9 products with different trading periods in Treasury bond reverse repurchase, namely 1-day, 2-day, 3-day, 4-day, 7-day, 14-day, 28-day, 91-day, and 182-day. The investment cycles are relatively short, and investors can choose according to their needs. The interest rate of government bond reverse repurchase is not affected by market changes. The yield will be determined at the time of transaction, and subsequent market changes will not change the interest rate.
Things to note for newbies to financial management:
1. Fully understand your own financial situation. Many people do not understand their financial situation, including income, expenses, liabilities, etc., before financial management, so it is difficult to formulate a reasonable financial plan. It is recommended that you have a detailed understanding of your financial situation and formulate a corresponding financial plan before managing your finances.
2. For novices investing for the first time, most investors can choose a conservative and stable strategy and choose medium and low-risk financial products.
3. Don’t go into debt for financial management. Borrowing for financial management is another misunderstanding that many people fall into. Blind borrowing will increase your debt, increase your financial burden, and make it more difficult for you to get out of financial difficulties.
4. Consider risk tolerance and capital liquidity. If you don’t have much money, don’t want to take too much risk, and need money at any time, it’s best to choose low-risk, high-liquidity financial products. If investors have sufficient funds, have little demand for capital liquidity, and have a certain ability to bear risks, they can appropriately pursue higher-risk investments.
5. Reduce risks by diversifying investments, but the amount should not be too large, and you should choose different types or less relevant financial products. At the same time, stop-profit and stop-loss points must be set to control risks within a certain range.
