What Are the Different Types of Low Risk Investments?

There are three types of low-risk investments: bank deposits, short-term RMB wealth management products, and savings treasury bonds (electronic).

Low risk investment

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Low-risk investments

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1. Elementary school stage (monetary fund and bonds)
As far as I know, the vast majority of people do not invest, depositing money into the current account (0.36% annual interest), or regularly every year (3% annual interest). The elementary school stage of low-risk investment is the purchase of money funds and bonds.
At present, the average annual return of most currency funds reaches 3%, and T + 1 withdrawals, the return rate is about 10 times the current demand, and the flexibility is basically equal to the current deposit. The yield of AAA corporate bonds is mostly between 4% and 5%. The interest rate is more than one year and can be traded at any time. So investing in bonds and money funds can outperform most people who do not invest.
2. Middle school student stage (playing new shares + reverse repurchase)
For a long time, the listing of new shares has never been broken. In 2007, new shares had a return of more than 20% a year. It was still good until 2011. The risks of new shares have increased since 2012, but it is still very convenient to invest. Apply for the purchase, wait for the winning bid, and sell it on the market. When there are no new shares, you can do reverse repurchase, and the annualized income is 3%. It will increase.
3. High school student stage (convertible bonds, stocks with cash options)
Convertible bonds are a derivative financial product that has two attributes of stocks and bonds. It is a portfolio of bonds + options. Stocks with cash options are also similar to convertible bonds. Cash options are equivalent to the guaranteed floor price. , Equivalent to the base of convertible bonds.
In order to play convertible bonds, the most important thing is to reasonably estimate the value of the options. At some moments, the option price will be undervalued or even negative. At some moments, the option price will be overvalued. When the option is undervalued, it can be converted. Debt or cash option stocks, selling convertible bonds or cash option stocks when the options are overvalued, can obtain low-risk investment income, but the valuation of options requires a certain skill and judgment, and must have certain Knowledge of mathematics as an aid.
4. Undergraduate stage (positive repurchase, stock index futures + stock funds)
Positive repo is a leverage tool. Using positive repo, you can integrate funds with extremely low interest and increase the leverage of the portfolio. When we are sure that an investment product is at low risk, the use of positive repurchase means can maximize the benefits in the process of correcting the investment target. However, the positive repurchase is a double-edged sword. If it is not played well, it may increase losses and even sell out. There is a game called Gongzhu, which contains a variety called Transformer. The master of Gongzhu can always use the transformer to expand the revenue when it is advantageous. There are also some players who hold the transformer early and eat a lot of results. Negative points, the more you lose, the more you lose. Positive repurchase is this transformer, which must be used when taking positive points.
Stock index futures are a tool of leverage + hedging. Stock funds are usually high-risk products, but when combined with short-sellers of stock index futures, they become low-risk investment products. There are two types of prices for stock funds: net price and trading price. Net price refers to the price of fund assets. Transaction price refers to the trading price of funds in the securities market. Net prices and trading prices are often inconsistent. Fund discounts or premium transactions may occur. The use of stock index futures can lock the change in the net price of the fund. At this time, you can buy when the fund is discounted, and sell it at par or at a premium, to obtain low-risk returns. The risk of stock index futures + funds is under-hedging or over-hedging, which requires dynamic adjustments to both positions.
5. PhD students (quantitative investment + forecast)
If you toss a coin, the win rate is 50%. After playing 10,000 times, the total win rate is still 50%. But if you toss a coin, the winning rate is 51%. After playing 10,000 times, the total winning rate will exceed 99%. If you can increase the winning rate by 1% in each investment, after multiple transactions, you will accumulate less. Changing from small wins to big wins is the core of quantitative investment. Quantitative investment master Simmons' helm medal fund has compounded more than 60% for 20 consecutive years. The financial secretary of the investors in the Ding Forum, relying solely on a single closed-end fund, repeatedly operates through the deviation between the net value prediction and the price, and at least outperforms the seal-based index by more than 20% each year. This is quantitative investment.
The core of quantitative investment is to construct a reasonable forecasting system and continuously optimize the system. Each time you invest, you don't need to pay attention to any fundamentals. The system calculates the good and buys it, and sells it badly. It is operated again and again, and the final result is very high. Relative returns.
Because the market is constantly revising, it s like hunters looking for mushrooms in the mountains, the number of mushrooms is limited, and over time, more and more people will know, and eventually the mushrooms will be dug out. Hunters need to find new mushroom fields at this time.
A simple quantitative investment tool, an Excel-sufficient, complex tool, needs to save all historical transaction data, and continuously regression verification and training system to make the tool in the best state.