Recently, there have been losses in financial management, and I dare not invest in funds and stocks. Does that mean I can only choose fixed deposits?
Indeed, since the beginning of 2022, with the overall sluggish investment market and many financial products suffering losses, many people have turned their attention to traditional fixed deposits. So, are fixed deposits really a good choice, and are there better products than fixed deposits? Let's explore together today:
According to the characteristics and evaluation criteria of investment and financial products, we generally judge the quality of a product based on its "safety, return, and liquidity." So today, let's start with these three criteria.
1. Safety Aspect
Among all investment products, the safety of fixed deposits is indeed very high. The key is the protection of the central bank's deposit insurance up to 500,000 yuan, coupled with the high credit system of banks themselves. Therefore, fixed deposits are very safe.
However, there is a product whose safety far exceeds that of fixed deposits. Perhaps you have already guessed it; it is the "national debt" we talked about a few days ago and are currently being issued. It can be said that national debt, backed by national credit, is undoubtedly the safest product currently available, without a doubt.
2. Return Aspect
When investing and managing finances, in addition to ensuring safety, I think the most important thing people may be concerned about is its return. During the time when capital-guaranteed financial products were prevalent, the returns of fixed deposits indeed did not attract much attention.
(The translation is cut off as the original text was also incomplete.)But now things are different. After the introduction of the new asset management regulations, wealth management products not only do not promise to guarantee the principal, but they have even incurred losses. Therefore, the current returns on wealth management are no longer guaranteed to be higher than those of fixed deposits.
However, it should not be forgotten that there are still many bank products that offer higher returns than fixed deposits, such as large-amount certificates of deposit, large-amount deposits, exclusive deposits, and special deposits issued by many banks, all of which provide very good returns and are safe and principal-protected.
As for products that do not guarantee the principal but may still offer returns exceeding those of fixed deposits, there are some, such as fund regular investments, bond funds, and various wealth management insurance products offered by insurance companies, which also provide relatively good returns.
In terms of liquidity, the liquidity of fixed deposits is definitely a weakness of the product. However, especially after the cancellation of tiered interest calculation, it can be said that fixed deposits have no advantage in terms of liquidity. Cash management products with comparable returns, such as the well-known "Yu'e Bao" and other similar products, are popular for their more flexible terms. Of course, if you want to withdraw fixed deposits in advance, methods we have previously discussed, such as certificate of deposit pledge and partial early withdrawal, can also compensate for the poor liquidity of fixed deposits.
In addition to fixed deposits with full deposit and withdrawal, products such as notice deposits, flexible deposits, and interest-bearing deposits also have high flexibility, and interested friends can pay attention to them.
However, no matter what, investing in a financial product should not be easily concluded based on a single indicator, but should be judged comprehensively.
Therefore, for the three indicators mentioned above, although some products are better than fixed deposits, many of their shortcomings are also obvious, such as unstable returns, low flexibility, or even the risk of loss, which is possible.Before engaging in investment and financial management, it is crucial to consider your personal circumstances and choose products that suit you with caution.
What is the most important indicator for you when selecting financial products?
We welcome your comments and discussions to explore this topic together.
