22 advices on investment
You can use the investment pyramid to identify the risks of different products.
Take the time to continuously evaluate the value of your stocks.
When you buy valuable stocks at a reasonable point, you only made half of this investment. The key is to choose the right price to sell it, and that will really create investment income.
Some people make a lot of money in the stock market, but they rely on more than luck. Good investors have spent a lot of time studying the stocks they are going to invest in before investing, and after they decide to buy a stock, they still continue to evaluate their value. Even if the final sale of stocks completes the investment, they will continue to pay attention to a good company and look for the next buying point.
Fund fixed investment is not just about buying or not selling.
A wealth management manager will tell you that fund investment is a long-term investment accumulation process, but self-mandatory investment does not mean only buying or not selling.
Frequent volatility and severe market environment is more suitable for fund fixed investment, but in the environment of unilateral rise or fall, the advantage of fund fixed investment is no longer obvious.
You can set stop-loss points and take-profit points in advance before participating in fixed investment. When the fund tracked by the fixed investment reaches a certain rate of return, you can increase or decrease the investment according to the preset index, and sell the fund at the stop loss or take profit point.
A reasonable amount of investment assets is 20% to 30% of net assets.
The assets used by the family for investment must be maintained at a reasonable level. When this ratio exceeds 50%, it means that your assets have the ability to increase in value.
If you can save 40% of your income, you will have the ability to accumulate assets.
If you spend more than 80% of your annual income on normal living expenses, then you basically do not have the ability to accumulate assets. If your expenses account for about 60% of your total income, you have the ability to accumulate assets. At this time you can form financial assets, you can buy treasury bonds, save, or speculate in stocks.
It is very risky to invest in only one product.
Asset diversification is to diversify your assets into some unrelated investment products to reduce risks. This is also often said "Don't put eggs in a basket". Because the loss of one investment product can be offset by the return of another investment product, the liquidity between different products can also complement each other.
Don't borrow money to speculate in stocks.
The first taboo of investment is to use borrowed money to invest in high-risk products. Not only stocks, but also futures, financial derivatives, PE/VC, and bond repurchases are not suitable for investment with borrowed money.
The operating efficiency of a listed company is not equal to the value of the stock.
A listed company with good economic returns can deliver beautiful financial statements, but this does not mean that it is worth the investment. Obviously good performance will make the valuations of some companies falsely high. When you buy, the stock price is already at a high level. Similarly, low stock prices are not the same as cheap.
Don't use the stock price to measure the risk.
The stock price is not the basis for measuring the risk of individual stock investment. Low-priced stocks are also likely to fall further. Many stocks with a few dollars are loss-making junk stocks, and the risk is far greater than blue chip stocks.
There is no time to research stocks to buy funds.
You may not be suitable to buy stocks directly. This does not necessarily mean that you don't have enough knowledge structure to understand a listed company in depth. Maybe you don't have enough time to keep track of a company, or you must work hard to get out during the stock hours. Try to buy a stock fund. A professional institution will take care of the investment for you and will usually get better long-term returns, although you need to pay a management fee for this.
What you need is cash flow, not cash.
Setting aside 3 to 6 months of living expenses can guarantee a good cash flow for family finances, but you don't need so much cash. The currency of RMB 100 is only an IOU issued by the central bank, and you have to turn it into an interest-bearing asset. Buying T+0 currency funds, bank Tiantianying and other wealth management products that can be withdrawn at any time, or even a 7-day deposit can add value to your family's cash reserves.
Bonds are not just about making money without losing money.
Many people underestimate the potential risks of bonds and believe that no matter how the price of the bonds they buy changes, they can safely earn interest. In fact, when trading bonds in the secondary market, you may have bought bonds with a face value of 100 yuan at a price of 103 yuan. If the price of the bond transaction falls by more than the interest you earn, your investment will lose money. Only when you buy a bond at a price of 100 yuan or less and hold it to maturity, you can get the expected interest income.
The expected return is not equal to the guaranteed return.
The rate of return of various wealth management products is more attractive than one, but remember to distinguish between guaranteed return and expected return.
If it is an expected return, there is no guarantee that it will be obtained. Expected rate of return is the expected value of the final rate of return of financial products at the beginning of the issuance of financial products by financial institutions, and cannot represent the final result. At present, the rate of return of bank wealth management products is generally an annualized rate of return, which is calculated by converting the rate of return within the term of the wealth management product into an annual rate of return, which is a theoretical rate of return. For example, if you purchase a 7-day property product with an annualized rate of return of 100,000 yuan and an annualized rate of return of 3.1%, the actual income you get is 59.5 yuan instead of 3100 yuan.
Trust defaults have occurred, and trusts cannot be bought for high yields.
What you know as the "rigid redemption" of the trust means that after the trust product expires, the trust company must allocate the principal and income to investors. When the trust plan cannot be redeemed as scheduled or is difficult to redeem, the trust company will generally deal with it all. In fact, this is just an unwritten rule in the trust industry, and there is no legal provision that requires trust companies to make rigid payments.
Trust projects reached a peak of redemption from 2013 to 2014, and some relatively high-risk mineral trusts and real estate trust projects have been unable to redeem. When the risk factor is used as an indicator for choosing a trust, you can't just look at high returns.
Don't buy a trust in partnership.
The initial investment of trust products is 1 million yuan, and most products on the market have raised this standard to 3 million yuan or 6 million yuan. This is an investment product specifically aimed at high-net-worth households and requires relatively high investment risks. The lock-up period for most trust projects is relatively long, ranging from 18 months to 24 months, and some even more than 5 years. If you don't have enough investment funds, or are not mentally prepared for the loss of principal, then don't buy a trust in partnership.
There is almost no regulation of private equity funds.
There is no clear legal basis for private equity funds from establishment to operation, and fund raising and investment behaviors are irregular. When you buy private equity products, most of the information comes from the introduction of financial managers, and it is difficult to judge their actual investment capabilities. Don't be confused by high returns and affect your judgment. First judge whether the project you are investing in is likely to generate such a high return. Beware of criminals who use the name of private equity to raise funds, which may make you lose money.
PE/VC partners may "partner and deceive others".
When a PE/VC recommends a project to you, his business card may be "partner", "management partner", "founding partner", "partner chairman", "chief partner", and no longer the president or vice president. , Managing Director. Don't let these high-level business cards confuse your investment judgment, they are not necessarily really senior. The "professional advice" they give you is nothing more than asking you to buy products.
Gold does not generate cash flow.
If you buy gold not for consumption, but for investment, remember that gold does not generate cash flow, nor does it increase interest for you. Gold is not an interest-bearing asset. You can only make a profit when the price of gold rises.
Buying a shop is for rent collection, and the transfer tax is high.
The transaction cost of shops accounts for more than 50% of the value-added part, which is only suitable for long-term investment to collect rent.
Fixed assets should not exceed 60% of total assets.
If your assets are mostly real estate, or are concentrated on financial projects with a long lock-in period, then the liquidity of family assets will be lower. In the event of emergencies, the liquidity of household assets is insufficient, and it is difficult to meet some temporary large expenditure needs.
The "Law of 100" for high-risk investments.
According to the "Law of 100", a reasonable proportion of high-risk investments held by households in total assets is equal to 100 minus age, plus a percentage sign. The ratio of investing in stocks or equity funds to total assets can reach 70% at the age of 30, and up to 50% at the age of 50.
When investment income exceeds household expenses, you are financially free.
If the stable investment income has exceeded the family living expenses, it means that you have entered the stage of financial freedom. But remember, you can retire early only if you keep your wealth up and down.
2 indicators affect investment income judgment
Investment to net assets ratio = investment assets / net assets> 50%
If your investment assets are greater than 50% of the family's net assets, then wealth has a better ability to maintain and increase its value. If you do not include the owner-occupied housing, Chen Yanfang's investment to net assets ratio is less than 20%.
Fixed assets ratio = fixed assets / total assets <60%
This ratio reflects the liquidity of family assets, and fixed assets should not exceed 60% of total assets. The fixed asset ratio of Chen Yanfang's family is nearly 80%, resulting in insufficient asset liquidity, and it is difficult to meet some temporary large expenditure needs.