Why should I invest?
Everyone, when he starts to have money, how to deal with it is to manage money.
Some choose to spend money, some choose to save part of it, and those who choose to save will start to consider the issue of investment. Why should I invest? Of course, I hope that the money can grow and make money.
Put a bill at home, the money will not increase, but the price will rise. Years later, the same money won't buy what it used to buy. Therefore, it is not an investment to put a bill at home, and it will be a loss for a long time.
Basic investment and financing concept
There are many ways to invest, including stock, bond, fund, foreign exchange, fixed-term deposit, gold, real estate... How to choose? How to do it? I think the most important thing is to learn first, which is the necessary action before you start investing.
What do you learn? First of all, of course, is basic investment knowledge. However, as an amateur investor, it is only necessary to master basic financial knowledge. You don't need to be a graduate of the university finance department, and you can still be a successful investor; You don't need to go into the top of the list, study various kinds of technical analysis and charts... Just know the basic knowledge, such as PE value (P / E ratio), PB (market account rate), dividend rate, debt ratio of the enterprise, etc.; You don't need to be an economist, just understand the basic laws of supply and demand, the economic cycle, the fiscal policy of the government and the impact of monetary policy.
Next, you have to know yourself better, train yourself, understand the relationship between return and risk. It is important to choose between risk and return for different ages and family backgrounds. Basically, there are certain risks in investment, and there is no investment product without risk and high return in the world. In 2008, many people fell into the trap of "mini bonds", which was mistaken for the risk-free investment product.
Basically, the risk level of investment is chosen by oneself. Young people, losing can save again, reinvest, can take a higher degree of risk. However, according to MPF statistics, it is wrong that many young people choose "capital guarantee fund" in the direction of MPF investment. The term "principal guarantee" means low risk and low return. Too low return is also a loss in the long run. The more money is, the less valuable it is to lose money due to inflation.
How many investment methods do you have?
Stocks are certainly the most attractive of all kinds of investment instruments. Stock prices often appear hype, in a short period of time, a large number of speculators, as a gambling tool. Unfortunately, ten gambling and nine losses, speculation can make money is not many people, more often is "grain sugar export factory.". Earn, only a little because of the face of stock price adjustment and sell out, if the stock disaster more serious losses.
Fund is the best choice for people who don't know investment at all and have no time to pay attention to the stock market dynamics. Professional investment managers work for their own. Of course, investment funds pay these investment managers some service fees.
Portfolio at different ages
The sooner the investment starts, the better to accumulate experience, it is better to start working and start investing around the age of 20. Start with stock investment, you can fry or invest for a long time.
The older you are, the more you become a family, you should focus on long-term investment. With the experience of young people, we should start to understand which stocks are suitable for stock speculation and which stocks are suitable for long-term investment.
When you get older, you should step to retirement or retirement. You should pay interest mainly by buying stocks to collect dividends, buying bonds and buying buildings to collect rent.