The three-year and five-year interest rates of time deposits are very low, which cannot keep up with the rise in prices, let alone the rise in housing prices. Monetary funds have little risk, and yields that exceed regular rates. Other funds have certain risks. If there is a method and energy to choose, you can still choose a suitable fund. The specific situation depends on the investor’s own needs.
- If you don’t know much about funds, it is recommended to deposit them directly. Because buying funds requires certain professional knowledge, many financial managers will fool you, so it is recommended not to buy fund products for complete beginners..
- If you have a certain understanding of funds, don’t listen to the flickering of bank wealth management managers, and choose funds by yourself, it must be that funds are more cost-effective than regular deposits.
Under normal circumstances, the current one-year time deposit benchmark interest rate of banks is about 1.5%, which means that the current market interest rate is almost negative. For investors, in this case, if inflation is encountered, with the devaluation of the currency, it is no longer possible to maintain the value of the bank deposit period.
However, if you invest in funds, the returns of currency funds with lower returns are all around 4%, which has obvious advantages compared with regular banks.
In terms of risk, bank deposits have the lowest risk among investment products. Therefore, it is suggested that investors can reduce risks through several investment channels in order to achieve the goal of sound investment. Investors are advised to save and invest in funds in a certain proportion.
If the household income is low, the savings and investment fund can be carried out in a ratio of 5:4; if the family income is high, the savings and investment fund can be carried out in a 4:5 ratio.
In addition, there are several fund types to choose from to invest in to enhance your returns. To buy a fund, you must first choose a good fund company, then choose the investment direction of the fund, determine the level of risk you can bear, and then choose a fund that suits you.
In fact, each has its pros and cons, the main one being your own needs.
If you are a risk averse, that is to say a conservative person who is unwilling to take a little risk, then a fixed deposit is the best choice.