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After more than 20 years of development, my country's public fund industry has ushered in a new era of high-quality development. With the continuous accumulation of residents' wealth, the demand for financial management is increasing, and the fund investment group has grown rapidly. In order to help investors systematically master fund investment Basic knowledge, establishing the basic concepts of long-term investment, value investment and rational investment, Shanghai Stock Exchange Investment Education will continue to launch "Fund Investment ABC" in conjunction with relevant fund companies. Let's take a look at it together!
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In life, we work hard and work hard. We work to obtain labor income. In addition, we can also invest in financial management to obtain property income. By investing in stocks, bonds, gold and other assets, on the one hand, we can maintain and increase the value of the income accumulated by our labor, and on the other hand, we can also obtain investment income. . So how do we choose? What are the returns from different types of assets?
The domestic securities market is short. Let’s review the historical data of the United States from 1890 to 2020. During these 130 years, the U.S. CPI rose by an average of 2.6% annually, regardless of whether it is invested in financial assets such as stocks, long-term treasury bonds, or gold, Real assets such as crude oil or real estate can outperform inflation. Among them, the annualized return rate of stocks is the highest, reaching 9.5%, the 10-year treasury bond is 4.7%, and the annualized return rate of gold, crude oil, and real estate is slightly higher than inflation, at 3.5%, 3.0%, and 3.2% respectively.
The long-term return rate of stocks is significantly higher than that of other assets, and the wealth appreciation effect is far ahead. A dollar invested in the S&P Composite Index in 1890 would have become $38,800 in 2000, and $128,000 in 2020. The same $1 invested in a 10-year Treasury bond will only become $395 in 2020, only $85 invested in gold, and only $62 invested in real estate. The income of
stocks comes from corporate profits, and corporate profits are based on the sustainable development of the economy. Historical data in the United States shows that the long-term return rate of stock assets is higher than that of other assets.
There are two main ways to invest in stock assets: one is to buy and sell stocks directly, and the other is to invest through stock mutual fund products. For ordinary investors, direct investment in stocks is risky due to the limitations of professional knowledge, amount of funds, time and energy and other factors. Public funds have the characteristics of professional management, risk diversification, strict supervision, and information transparency. Through stock-type public fund products, investors can participate in stock investments with less funds and share the results of long-term social and economic development. (The content of this issue is jointly provided by the Shanghai Stock Exchange Investment Education Base and E Fund Investment Education Base)
Data source: E Fund Investment Education Base, OurWorldinData, MeasuringWorth, Robert Shiller, EIA, FRED, CEIC, CICC Research Department;
The income of each asset is It is converted into a fixed base index with 1890 as the base year. U.S. stocks are converted according to the SP Composite Stock Index + constituent stock dividends; 10-year U.S. Treasury bonds are converted according to 10-year Treasury bond interest + capital gains; house prices use the U.S. Case-Shiller House price index;
index past performance does not predict the future, the fund has risks, investment needs to be cautious.
