Why Do I Always Lose Money In My &Nbsp? Three Major Financial Mistakes Need To Be Kept Away.

Misunderstanding 1

Fund investment depends only on ranking frequency.

Case study:

The old Liu election fund has a set of theories: buying funds according to rank is not the top ten. At the beginning of last year, Lao Liu bought [1.80 0.63%], the number one Chinese businessman in the flourishing age. "There are natural reasons for the fund's ranking. I think the most important reason is that the investment level of fund managers is relatively high. Buying such star funds is more reassuring, and it is more likely to get profits."

Lao Liu's selection fund Focusing on the performance of fund managers, they did not realize that the rankings showed the fund's investment performance in the past. In the weak capital market last year, the funds bought by Lao Liu were hard to obtain, and even worse for Lao Liu, his method of buying funds by rank failed last year, which made him suffer a bigger loss. "Chinese businessman flourishing age (630002, fund bar) grew up first in 2010, when the market gave this fund a high valuation, and fund manager Sun Jianbo suddenly became a star investor." Let Lao Liu did not expect that the year-end end of the inventory, the fund lost 27.92% throughout the year, not only lost the market, even the stock fund average performance has not been achieved, ranking has also changed greatly, from the 2010 champion to the bottom of the position.

Countermeasures:

Huatai Securities [9.39 -4.86% shares research report] Wang Jun Ling analysis, the fund ranking is reflected in the past performance of the fund, representing history, in the selection of funds must not only look at the ranking, in particular, can not only look at the weekly ranking, monthly ranking, quarterly rankings and other short-term rankings as a basis to select the fund. When choosing funds, investors should comprehensively inspect their short-term, medium-term and long-term performance. On the other hand, we should also consider the return of risk after adjustment. That is to say, if the performance ranking is stable in a long period of time, only the long-term performance is stable and the return view fund is a good investment target. At the same time, what funds should be chosen must be carefully analyzed and compared, combined with the market environment, rather than simply taking the ranking of the fund as the selection criteria. Investment There will be losses. "Only buy good, do not look at rank", this is the correct idea of investment funds.

Misunderstanding 2

The insurance should be invested in the wrong "sedan chair".

Case study:

Heavy investment, less protection, just for the sake of Insurance However, the basic function of insurance is to protect the family finances. Some people have such misunderstandings when they are insured. The essential function of insurance is protection. The main function of resolving the unknown risk is to insure the proceeds.

"How can the dividend be 144.20 yuan?" Mr. architect Yu is not good at insurance. The year before last, Mr. Yu signed an annual premium payment policy of 10 thousand yuan in the bank's financial counters. The top three items of the five distinctive features made him remember vividly, "fixed returns", "annual dividends" and "compound interest accumulative". "At that time, the staff also showed me the sum table of the annual rate of return, almost all of which is above 4%. I think this investment can be said to kill two birds with one stone, and it can be guaranteed without losing money. How come the yield last year is only 1.4%?"

Mr. Yu and those who have similar complaints are not in the minority. So the insured who pays so much attention to the dividend function of the insurance and how much the dividends are paid has actually fallen into a big mistake of insurance and invested insurance. It is easy for policyholders to understand this deviation from the new life insurance products, including dividend insurance, investment linked insurance and universal insurance. In addition to the guarantee function of life insurance, these kinds of products will bring a certain profit expectation to the insured, but the insured should not reverse the relationship between the two. If these products are insured only for investment, we will find that the performance of these products will not meet expectations, or even disappoint them.

Countermeasures:

Li Jian, a financial planner, said that insurance and investment should not be confused. When considering whether to insure or not, we should first attach importance to the guarantee function itself, and then pay more attention to the investment part. The premium of bonus, investment and universal insurance is generally expensive, which is not suitable for young people whose career is just starting. In the turbulent financial environment, it is more likely that there will be a crisis of premium cut off. Under the same premium, if the consumption type is the product that does not return premium, the guarantee amount will be higher and the guarantee can be more in place. Of course, if you have a clear understanding of the functions of dividends, investment and universal products, you find a balance between security and investment, and make full use of their respective characteristics to make use of them, believing that the product will ultimately achieve satisfactory insurance and financial purposes.

Misunderstanding 3

Buying financial products depends only on expected revenue.

Reporters learned in the interview that when some people choose financial products, they regard the rate of return as the only "rigid index". They only choose products with high expected yield. They simply do not care about the risk geometry of products, and whether or not the expected yield of products can be realized, so that financial disputes occur frequently.

Case study:

"What is the yield of this product?" this is a question that most investors will have to choose when choosing financial products. In spite of the continuous development of financial products market in recent years, some institutions in the past have been banned by the "expected rate of return" to attract investors' eyeballs. But many investors are still used to "choosing products". Rate of return "As the sole criterion for choosing products, investment only depends on yield, which leads to improper financial management.

In March last year, Mr. Tsang bought a linked financial product. "At that time, the most important reason for looking at this product is that its highest expected rate of return can reach about 8%." Mr Tsang feels that under the downturn of the stock market, the yield of financial products can reach 8%, which has been a satisfying yield. However, what Mr Tsang did not understand was that the product ran less than 5 months, and the product was automatically terminated because the linked stock fell below the pre-set minimum price. In addition to failing to get 8% of the expected revenue, Mr. Tsang's principal also lost 10%.

Mr. Tsang only thought of carefully studying his product manuals. He expected that 8% of the yield would only be the most profitable thing in the best possible circumstances. When Mr. Zeng invested heavily in the European debt crisis, the linked stocks fell below the minimum price of the product set, triggering the termination of the product automatically. As part of the guaranteed product, Mr. Tsang received a 90% principal.

Countermeasures:

Chen Zhe, financial manager of [13.44 -1.47% shares of Xingye Bank, said that when people buy financial products, they should first understand their financial status, understand what stage they are in, and make financial planning in advance. Secondly, it is understandable for the public to choose financial products from the rate of return, but it must be clear about the risks behind the proceeds. We need to know whether the investment direction of financial products is to invest in commodities or bonds, or other categories. Once again, before buying the financial products, people should see clearly the contents of the contract, and how good the oral propaganda will be. Finally, it should be attributed to the contract agreement. It is worth mentioning that in the misreading of the rate of return, there is also a phenomenon more and more typical, that is, the use of "annualized rate of return" instead of product revenue expectations. The so-called annualized rate of return is generally achieved within a longer investment period, and generally deviates from the short term. Moreover, the annualized yield corresponds to the income of a year, rather than the corresponding percentage of principal income in the short term. For example, if the product with an annualized rate of return is 12%, if the investment period is one month, even if it reaches the annual yield of 12%, its final income will only be equivalent to 1% of the principal amount.