What are the three elements of traditional investment and financial management?

1, security. Investors should first pay attention to the safety of wealth management products, which is the basis of investment income. If the security of wealth management products is too low, it is likely to deviate from the investor's investment purpose in the later stage of investment and bring losses to investors. Moreover, investment does not say how much income is earned, and capital preservation is the most basic. Many investors attach great importance to the safety of wealth management products, which is why low-risk and high-security wealth management products such as certificates of deposit, treasury bonds and physical gold have always been favored by investors.

2. Liquidity. Liquidity is the liquidity of financial products invested by investors. The purpose of investors' financial management is to put money into financial products and sell financial products in the future to get more capital gains. If in the investment stage, the income of wealth management products plummets, investors need to sell and leave, or investors need a lot of cash flow and have to sell wealth management products, then the liquidity of wealth management products invested by investors will be tested. Highly liquid wealth management products can give investors more investment initiative. Therefore, investors should not only pay attention to the income of wealth management products, but also pay attention to their liquidity when investing in wealth management products, whether to resist the risks of wealth management products or for the real capital flow.

3. profitability. The purpose of investors investing in wealth management products is to gain income and earn more money, so the yield of wealth management products is also an important indicator. In the case of similar product risk and liquidity, within the scope of investors' ability, we should choose wealth management products with higher returns as much as possible to increase the accumulation speed of assets. This is also the reason why the bank's large deposit certificate business is more popular with investors than the time deposit business, and the former's income is obviously higher than the latter. But investors can't blindly pursue profits and ignore more important security and liquidity, otherwise they may be harmed by their own greed and have to bear the losses caused by high risks.

The three elements of financial management influence each other, and none of them is completely independent. Most wealth management products with high security have general liquidity and low profitability. Most wealth management products with high profitability have high liquidity but low security. Investors should choose the most suitable investment method according to their own risk tolerance, risk preference and investment objectives.