National Day holiday is over, and the day of "moving bricks" is started again. Our financial investment will continue. This time, I will respond to some questions from netizens.
First, the first netizen asked: Is there any kind of financial management that can protect the principal? It seems that this friend should be a relatively conservative investor.
But I want to tell you with regret that there are no financial products that guarantee capital. In 2018, , the China Banking and Insurance Regulatory Commission issued new new asset management regulations, requiring banks to clear out the insurance premium financial products. If someone tells you that their XX product is guaranteed, this person is likely to be a liar.
and not only bank wealth management, but even bank deposits are risky now, such as the incident of Henan rural banks that only appeared not long ago. So we need to establish a new sense of financial management and investment. We must know that any investment is risky, but the risk level is different. And what we need to do is to constantly learn financial management and investment knowledge, and to reasonably avoid and reduce the risks of these investments.
The second friend asked: Where is the foundation of the Internet? Will the decline stop after November? Will the interest rate hike in the second half of the year still fall? This friend is more concerned about the Chinese Internet sector, and he should have funds investing in this sector.
Chinese Internet sector is one of the sectors with the largest declines in the past year. We can take a look at the trend of the China Internet Index Fund, which has fallen from its highest point and has fallen by 74%. , and this is just a decline in the index. If it is stocks, will fall more.
So if the United States raises interest rates, will it continue to fall? If the United States raises interest rates more than expected, then US stocks and will continue to fall. Many of these Chinese Internet companies are listed on the US stock market, so it is likely that they will continue to fall. As for whether the decline will stop in November, there is no way to predict it. We cannot predict the lowest point of the market in . We only know that the Chinese Internet sector is in the bottom area now. , but even in the bottom area, it is still possible to continue to decline. However, from the perspective of long-term investment, the Chinese Internet sector is now very cost-effective.
The third friend asked: Is there any difference between buying funds on WeChat Financial Management and securities company APP? It seems that this friend doesn’t know much about the fund’s sales channels and platforms.
In fact, in essence, buying funds through WeChat Financial Management and securities company APP is the same. They are both fund distribution platforms, and in the end we buy fund products issued by fund companies. The difference between is that WeChat Financial Management is a third-party fund sales platform and is the channel of Tencent Fund Sales Co., Ltd., a subsidiary of Tencent . The securities company APP is the fund sales channel of securities companies.
has a little different, that is, securities companies can buy and sell funds in the store, which is not available in other fund sales channels. For example, ETF funds, closed-end funds, , LOF funds, these funds can be bought and sold through securities companies' channels. If we want to buy and buy funds in the store, we must use the securities company's software. If you are buying an off-market fund, then it is OK to buy it through which platform it is, it just depends on whether the platform's fee rate is discounted and whether it is convenient to use.
OK, I will reply to these three friends’ questions this time. If you encounter any problems in the subsequent financial management and investment process, you are welcome to leave me a message. For suitable questions, I will reply to everyone by writing an article like this.
Text/Hu Rui Financial writer, financial science popularization lecturer, representative works "24-day financial management quality course: Determining your life's wealth" and "Practical Fund Investment Guide" focus on popularizing financial knowledge, allowing more people to re-understand financial management
