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Personal investment risk and its avoidance measures

(A) the main risks faced by individual investment

Risk refers to the possibility of future losses. Investment and risk complement each other. Generally speaking, the higher the risk, the greater the income; The lower the risk, the smaller the profit. As far as personal investment is concerned, the risks are mainly as follows.

Risk of principal loss. No matter because of market factors or business advantages and disadvantages, as long as the principal will be lost, there will be such risks. Problems with domestic underground investment companies and investors' investment losses are also such risks.

2. Risk of loss of income. It means that investment can't bring the expected income. The risk is that the rent will not be collected or the dividends will not be distributed.

3. Inflation risk. That is, the purchasing power risk mentioned above has a considerable impact on investment, but many people often ignore this factor.

4. Timing risk. It refers to the risk that investors can hardly grasp the opportunity to enter and exit the market and buy low and sell high. For example, investors correctly judge the trend of the whole market, but sell low and buy high when entering and leaving, resulting in heavy losses. Anyone who has experience in stock trading knows that timely entry and exit, buying low and selling high, is the only way to succeed in investment, but few people can really grasp this opportunity. In addition to stocks, high-input investments such as real estate and corporate bonds (such as futures) are also greatly affected by this risk.

5. Liquidity risk. This means that an investment cannot be converted into cash when needed. Bank deposits, bonds and most stocks can generally be realized quickly, so the liquidity risk is low; However, real estate and general private collections are not easy-to-cash investments with high risks.

6. Manage risks. When investing, individual investors need to spend time and energy to manage their investment objects. From another perspective, this is also a risk. Buying a house for rent involves this kind of risk. In addition, domestic stock market investors often spend money in securities companies, which is actually surprisingly high. Because investors give up their jobs and stay in securities companies all day, they pay the opportunity cost of obtaining income through other means.

7. Interest rate risk. As mentioned earlier, fluctuations in interest rates may cause investment losses. For people with loan debts, the increase of interest rate will increase the interest burden (except for fixed interest rate loans); For retirees who live on interest income, lower interest rates will reduce their income.

8. Income tax risk. Refers to the risk that investors ignore the income tax issue or will not avoid taxes legally and reasonably when making investment plans, thus affecting the investment income.

It is very important to understand these different kinds of risks. Because individuals have different conditions and personalities, their attitudes towards risks will be different. The risk limit that everyone can bear and is willing to bear is very different. Some people blindly avoid risks, hoping to be a "trap person" safely, but some risks in social life and personal life are inevitable. In the case of hedging failure, only accepting the risk, facing the risk squarely and facing the risk squarely is a desirable objective attitude.

(B) the main investment misunderstandings of individual investors

According to the different investment risks, there are three main misunderstandings for individual investors in China at present.

1. Get quick success and instant benefit

Some investors suffer from investment hunger, commonly known as "money doesn't stay overnight". As long as you have some money on hand, you should look for opportunities to place orders, for fear of missing the opportunity to make money, but you miss the real good opportunity in a hurry. Such investors usually face higher timing risk, liquidity risk and management risk. In the current "meager profit era", such investors should make some appropriate contractions in financial management. For example, it is best not to touch many investment products that are quite difficult to realize, so as not to get stuck. In our country, most families arrange their own personal assets. At present, the financial channels that can be selected are mainly savings, bonds, stocks, insurance, real estate and so on. The selection of varieties, proportion distribution and risk control are the keys to financial planning. If you lack sufficient financial knowledge, you can ask financial experts for help.

Step 2 be conservative and rigid

Although there are tens of millions of investors in the stock market and the investment teams in the bond market and foreign exchange market are also growing, there are still many people who are obsessed with the only way to manage money-saving money. "Gathering sand makes a tower" and "dripping water wears a stone" are the true meaning of their financial management. Indeed, among many ways of investment and financial management, saving is one of the ways with the least risk and the most stable return. However, these investors have to bear the risk of high inflation. Especially in China, due to the continuous interest rate reduction and interest tax collection by the central bank, the current interest rate has reached the lowest level in history, and the interest rate of foreign exchange deposits has also dropped to "freezing point". In this case, it is almost impossible to realize the appreciation of personal assets by relying on deposits; In the event of inflation, personal assets in the bank will shrink invisibly. The money in the bank is always just an empty number in the passbook, which does not have the investment function of stocks or the protection function of insurance. Therefore, financial experts suggest that according to age, income status, expectation and risk tolerance, it is the best way to divide deposits reasonably and make them form personal or family assets in different forms. Some experts suggest that the ideal investment portfolio for an on-the-job employee of about 25 years old is: real estate 10%, cash 5%, bonds 20% and stocks 65%.

Cover everything

Some investors don't have much money themselves, but they always feel that every opportunity to make money advertised by others can't be missed, so they do everything, local currency, foreign currency, A shares, B shares, calligraphy and painting, and postal currency cards. "The east is not bright and the west is bright", there is always a place to make money-this is the investment method pursued by many people at present. All-inclusive financial management does help to diversify investment risks, but its defects are also obvious: this kind of investment usually bears high management risk, liquidity risk and timing risk. Because there is not enough energy to pay attention to the trend of each market, the result may be that you can't make money anywhere, and there is even the danger of asset impairment. For ordinary people who don't have too many assets, only by concentrating their energy and advantages in relatively concentrated places can they maximize the benefits of limited funds. Of course, if all the remaining money is spent on stocks, or all the possessions are used for real estate investment, it will also bring hidden dangers of excessive concentration of risks. Apply the theory of james tobin, a famous economist and Nobel Prize winner, "Don't put all your eggs in one basket", but don't put them in too many baskets.

(C) the path to avoid investment risks

1. Keep calm before investing and do some financial management work in advance.

Don't "follow the crowd" when investing, and make decisions on impulse. Some investment products avoid the important and neglect the important in commercial propaganda, blindly exaggerating the income prospect, such as "one-time investment will benefit for life" and "annual investment income is guaranteed to be more than 20%", tempting people to invest with exaggerated expected income, but not mentioning the investment risk or passing it by. For these good things, investors must not be carried away by the so-called "high returns", but should objectively and calmly analyze the investment risks, which are often directly proportional to the returns. In addition, investors should pay attention to investing according to their own interests and effectively avoid investing in products that they don't understand and are not familiar with. On this basis, personal investment, including family investment, should formulate corresponding investment and financial management plans, make investment and financial management files well, and set up special investment and financial management accounts. When making plans, such as the amount of funds used for consumption, savings and investment in each period, we should make overall arrangements according to the income situation and strictly implement them. Considering that there are more and more investment and financial management tools, many important contracts, card discounts and vouchers generated by them need to be properly kept, so it is particularly necessary to do a good job in investment and financial management files. Because this way, you can know your own investment and financial management, especially if some bank passbooks and credit card accounts are lost, you can report the loss in time according to the files to prevent unnecessary losses. In addition, separate accounts should be set up for investment and financial management, so as to facilitate self-management, keep abreast of the profit and loss of investment and ensure that it will not affect the normal conduct of daily life.

2. Comprehensive evaluation of the selected varieties

In the past, there were few investment channels for personal finance, and only traditional investment methods such as savings and national debt were relatively simple. Now all kinds of investment varieties emerge in an endless stream, such as stocks, funds, asset custody, personal speculation, gold and so on. , and "the flowers are getting more and more attractive." Therefore, investors should comprehensively weigh various investment methods, choose suitable investment varieties and build a good investment portfolio according to their actual economic strength, risk tolerance and financial management professional ability. For example, individuals with relatively safe savings but low returns, high stock market returns but high risks and moderate financial resources can choose an open-end securities investment fund or bond fund with stable operation and good returns to neutralize the risks and returns of savings and stock market, so as to minimize risks and increase returns. In order to spread risks, investors can choose a variety of investment methods to balance investment returns and risks, and when necessary, they can also seek professional financial planners to design a plan suitable for family investment. In fact, in western countries, personal finance business has penetrated into almost every family, and the business income of personal finance business has accounted for more than 30% of the total income of banks. In the United States, the average annual profit growth of personal finance business of banks even reached 12%- 15%. In China, although many banks have launched personal financial services to provide personal investment consulting services for residents, most of these services are still at the consulting level and cannot provide real value-added services. Even the personal financial services provided by some banks are just the confluence of various personal businesses of banks. Therefore, financial institutions expanding new business in personal investment and financial management can not only bring new profit growth points for themselves, but also actively guide residents' personal savings to transform into investment rationality, which will help individual investors understand and understand various investment channels and enhance their investment awareness.

3. Pay attention to prevent risks during transportation.

Investors should follow up and observe the changes of investment varieties and prevent risks in transit in time. Take the open-end fund as an example, many investors put it on the shelf after buying it, ignoring the overall trend of the stock market and the changes in fund returns. If the fund has problems at the operational level and redeems when its net value shrinks, it may lose a lot. Even for the simplest savings, we should always pay attention to the change of interest rate, adjust the deposit method in time according to the interest rate situation, and reduce or increase the proportion of deposits in the whole investment funds.

4. Choose a reasonable financing method to reduce the investment cost.

Investment income is closely related to financing cost, and investment risk can be dispersed through reasonable financing forms. There are two main financing methods: one is sovereign financing and the other is debt financing. According to the characteristics of the two financing forms, under normal circumstances, sovereign financing should be chosen for projects with high investment risks to reduce the pressure of debt repayment; For projects with relatively small investment risks, debt financing should be adopted to reduce financing costs and give full play to financial leverage.

5. Strengthen scientific investment decision.

The scientific investment decision here mainly includes two aspects: one is the scientific decision-making procedure, that is, (1) collecting, researching and analyzing information, (2) making investment plans, (3) evaluating comparative investment plans and (4) determining investment plans; The second is to evaluate the comparative investment schemes by using investment risk decision-making methods, such as expected value method, risk-adjusted discount rate method, proper quantity method and so on. In reality, a large number of facts have proved that scientific investment decision-making is not only necessary, but also can effectively prevent and reduce investment risks because of the randomness, subjectivity, blindness and arbitrariness of decision-making. Through scientific decision-making, investors can resolve certain risks in advance and prepare for possible risks, thus enhancing their ability to resist risks. Strengthening scientific investment decision-making is the key link to control investment risk. In order to strengthen the scientific nature of investment decision-making, investors should try to obtain as much information as possible, carefully study and forecast the market, grasp the market changes in time, respond quickly, sensitively and accurately, and avoid and reduce investment risks. At the same time, we can use special methods to analyze a variety of feasible alternatives, choose the best scheme to invest on the basis of evaluation and comparison of various schemes, and implement dynamic management of the whole process of investment activities.