What are the types of financial management?

The types of financial management can be divided according to risk-return, source, and level, and different ways of division can be differentiated from each other against each other, and the following will be divided by these 3 perspectives to explain.

Division based on risk-return

Based on the risk-return of financial management, from low to high is divided into cash, fixed income, equity and leveraged.

Cash class refers to the financial management with low risk-return and good liquidity. The main investment scope of cash class is money market products. Common cash categories are cash, demand deposits, money market funds and so on. Fixed income category, i.e. fixed income instruments, refers to products whose main assets are invested in debt. Fixed-income products usually have relatively fixed investment returns and are financial tools with medium income risk. Common fixed-income instruments include bonds, bond funds, fixed-income bank financial products, fixed-income brokerage wealth management programs, fixed-income trust products, and so on. Equity products are products whose main assets are invested in ownership categories, including stocks and unlisted equity. Equity products are characterized by high volatility in investment returns and are medium to high risk family financial instruments. Common equity-type instruments include stocks, equity funds, equity-type bank financial products, equity-type brokerage plans, and equity-type trust products. Leveraged instruments usually use margin trading, there is a leverage effect, the return and risk are amplified at the same time, belonging to high-risk income instruments. Leveraged financial instruments mainly include derivatives such as futures and rights. Divided according to the source of financial management

Based on the source of financial management, it can be divided into banking investment tools, securities investment tools, insurance investment tools, trust investment tools and Internet investment tools.

Banking investment tools mainly include all kinds of deposit products, large deposits, bank wealth management products; securities investment tools mainly include public funds, private equity funds, brokerage firms pooled wealth management programs; insurance investment tools mainly include all kinds of financial insurance products, insurance asset management products; trust investment tools mainly include all kinds of trust products, trust asset management programs; Internet investment tools mainly include all kinds of "baby" products and trust asset management programs; and Internet investment tools mainly include all kinds of "baby" products. The investment tools of the trust department mainly include various types of trust products and trust asset management plans; the investment tools of the Internet department mainly include various types of "baby" products and online lending products. According to the hierarchy of products

Based on the hierarchy of products, investment tools can be divided into single investment tools and mixed investment tools.

A single investment tool is a similar product with the same nature and similar return and risk characteristics. According to the dependency relationship, the single instrument can be further divided into basic instruments and derivative instruments. Basic tools refers to those original, independent existence of financial products, can be divided into currency, debt, equity, foreign exchange, commodities, real estate and physical class; Derivative tools are derived from the basic tools of the price changes linked to the basic tools of the product, including forwards, futures, options, swaps, and asset-backed securities, derivatives are usually traded on margin, there is leverage, with high risk and high return. Derivative financial products are usually traded on margin with leverage effect and characterized by high risk, high return and high investment threshold. Hybrid investment instruments refer to products that are a mixture of multiple single instruments, mainly including bank financial products, public funds, brokerage asset management products, insurance asset management products, trust plans, private equity funds, etc. The risk and return of hybrid investment instruments are determined by the risk and return of the instruments. The risk-return of a hybrid investment vehicle is determined by its hybrid structure. For example, the stock fund has more than 80% of the assets allocated to equity products, the remaining 20% of the assets can be allocated to fixed income or monetary products, which can be seen that the stock, the fund belongs to high-risk tools.