First of all, insurance is the most important role of protection. Reasonable allocation of our own insurance, can let us not too much economic pressure, but also let the future life without worries ~ but remember, do not buy insurance blindly, because there are too many pits. Must oneself course study, learned to understand, know the gist of each kind of insurance, go buying again.

Let’s look at a picture

This chart is called the financial pyramid. From the bottom of the pyramid to the top, different investment products are distributed.

The higher you go, the more potentially risky the investment and the higher the potential returns.

From Treasury bonds and time deposits at the bottom to industrial collectibles at the top, they basically cover the types of investment products we commonly see in the market.

We can see that: low risk: time deposit, Treasury bonds, monetary funds, reverse repurchase of Treasury bonds, local government bonds, some bank financing; Medium risk: corporate debt (rated AA or above is preferred), part of funds, part of bank financing; High risk: some funds, stocks, P2P, trust, some bank finance, foreign exchange, futures, precious metals, industry, collectibles, etc.

Explain one by one:

Trust (threshold 1 million), foreign exchange futures, precious metals, collection, belong to more high-risk, high threshold.

P2P: high risk, more than 3,000 out of problem or run away, the principal and interest are not collected back. P2P lack of strict regulation investment should be cautious cautious again. If someone tells you that peer-to-peer offers 15% returns and is completely risk-free, don’t touch it! You should never invest more than 30% of the money you can invest on the platform. In addition, the whole operation of the platform and financial risk control should be examined before investment, or a large company should be the backing.

Bank financial products, the risk span is very large, from low to high. It is 50 thousand threshold commonly, and divide for bank itself issue and the third party issue, the bank sells on a commission basis. Therefore, investment bank financial products, we must look at the product manual. How many days is the investment and duration of the raised funds? How to make money? Perfected with interest? Capital – protected floating interest or no – principal – no – income? And so on. Don’t look at the bank and think it’s low risk. In addition, another disadvantage of bank financing is that the poundage is very high.

Stocks, a risky position on the financial pyramid, are simply the six-digit code that many people enter when they buy. But in fact, these six numbers represent a public company. When you buy the stock of a listed company, explain that you have become the shareholder of this listed company, is one of the master, the company’s stock falls, you will lose money, the company’s stock rises, you can enjoy the income that this rises, some listed companies will regularly give shareholders bonus. Unlike bonds, when you buy a corporate bond, you become a creditor to the company. The company is obligated to pay you back the principal and interest, but you do not enjoy the benefits of the company’s growth. If you buy stock in a company, the company is under no obligation to pay you back if the stock loses money. But you also have the opportunity to enjoy the benefits of a great company as it continues to grow.

There are many types of funds, high and low, money funds belong to the low risk, bond funds belong to the risk, stock funds belong to the high risk.

Money funds (such as Yu ‘ebao) are characterized by safety and good liquidity.

Local government bonds, corporate bonds need to examine the borrower, repayment ability, interest and borrowing time. The threshold for corporate debt rated above AAA is $3 million.

The risk of reverse repurchase of Treasury bonds is extremely low, the liquidity is good, and the threshold is low. Can be inside stockjobber market ability repurchase only (need goes stockjobber company to open an account).

The national debt has the national credit, the risk is very low or no risk.

Time deposits also have little or no risk. So if someone recommends an investment with a higher yield than a Treasury bond and says it’s risk-free, you need to be wary.

In fact, through the analysis, we have come to realize the common investment products in the market, and more clearly understand that in order to beat inflation in the long run, it is far from enough to simply deposit money in the bank and buy Yu ‘ebao. In addition to the high risks and low returns, the investment products we ordinary people can choose are funds and stocks if we want to beat inflation through investment and finance.

Pay attention to

In the process of financial management and investment, we tend to focus too much on returns, but ignore risks. In fact, risks and returns are inseparable. Here are three sentences describing the relationship between risks and returns.

(1) Low risk does not necessarily mean low return. If you are patient and wait for an investment to be undervalued enough to buy it, the risk is often low and the return is sufficient. Of course, it takes knowledge and methodology to find such investments.

(2) High risk does not necessarily equal high return. In June 2017, the collapse of “iGOFX”, a so-called foreign exchange trading platform that claimed to “earn dollars while lying on the ground”, cost nearly 400,000 investors nearly 30 billion yuan. It claimed that it could get 7 times in one year and 66 times in two years, and it soon attracted a large number of investors by adding the mechanism of MLM sharing. The investment of 10,000 yuan will change from 70,000 yuan in one year to 660,000 yuan in two years, and the investment of introducing new people to the platform will also be shared. Anyone with a little financial and investment knowledge knows that this is not going to happen. However, the temptation of sudden wealth in a short period of time + the highly packaged website + the earnest promise of friends and relatives + the early dividend made many people gradually invest their hard-earned savings in the case of knowing nothing about foreign exchange and the platform. Such risky investments that can run away at any moment are not going to give you seven times in one year and 66 times in two years. A lot of times, you’re looking at high returns, but others are looking at your principal.

(3) Low return does not necessarily mean low risk. Bernard Madoff’s Ponzi scheme, which promised annualized returns of 10%; Ezubao, which was investigated at the end of 2015, promised only 9-11% of its profits. Many partners fall into the scam, believing that such a low rate of return can be achieved in many ways, so it should be safe. However, it is this kind of thinking blind spot, can let a person fall into the trap and unconscious. Most of us, being ordinary people, are earning money in return for our time and effort. Because it is not easy to make money, it is more important to understand before financial investment that the primary purpose of financial investment is to protect your wallet, do not let the fraud paper easily succeed; Don’t invest blindly, otherwise you will lose your hard – earned principal. Having satisfied these two points, let’s talk about making money. We through the study and actual combat, in fact, will find that the terrible is always unknown.

Treasury reverse repurchase

1. Now, let’s introduce an investment product that is particularly suitable for young people to practice — reverse repurchase of national debt.

Although the popularity of national debt reverse repurchase is not high, in fact, it is particularly suitable for beginnees in investment and finance to practice, the most suitable for wool to earn some pocket money. At particular times of the year, for example, annualized returns of 20-30% can sometimes be achieved. On September 29, 2016, the reverse repurchase rate of 1-day Treasury bonds in the Shanghai Stock Exchange exceeded 45% in the intraday. Did you feel very rebellious? So let's review what a reverse repurchase is. Treasury reverse repo, in essence, is to lend money to others, is a short-term loan. Individuals lend out their own money at a fixed rate of interest; Borrowers (typically large corporations) use their own Treasury bonds (or bonds with a certain rating) as collateral to obtain the loan and repay the principal and interest when it matures. The reverse repurchase of Treasury bonds is the behavior of the company, short-term overnight borrowing, the actual amount of borrowing is very large. The repurchase threshold is $3 million, which means that the people who are borrowing from you against the T-bills, they all have at least $3 million in assets.

So the Treasury bonds are essentially collateral, and you know the Treasury bonds are very low risk, so it's safe to use them as collateral.

So why do companies pay high interest rates to borrow? When the market is short of money (the banking system for performance, short-term borrowing by enterprises), enterprises will borrow money through various channels with high interest rates, and reverse repurchase of national debt is one of the channels.

2. Let’s take a look at its advantages: (1) safety, don’t lose money: reverse repurchase for debt, in between you and the borrowers, both the mortgage bonds, the middle and the China securities depository and clearing co., LTD. (hereinafter referred to as the company, similar to the role of the stock exchange) in the supervision and management, if the borrower is not out of money, in the company will help you get the money back; ② Low risk and high return: the return rate of reverse repurchase is related to the capital level of the market. The tighter the capital level is, the more money the market needs, and the higher the return rate of reverse repurchase is. (3) Easy to operate: there are stock accounts can be directly sold, the input code can be, fast operation, the maturity of funds to the account automatically; ④ low handling fee.

3. After talking about its advantages, let’s see what kind of people it is suitable for. ① People who only know how to deposit in banks and Yu ‘ebao, but want to get high returns (do you feel that this is talking about their original ah?) ; (2) Shareholders (our money in the stock market, put away in vain is no return, but through a day of reverse repurchase, overnight return, the next day the money can also be used to buy stocks); ③ a person with spare money in his family; ④ just into the water is very fresh, hand itch investment novice. Fund shares will not, to point reverse repurchase solution hand itching ~

4. There are 18 kinds of reverse repos of Treasury bonds, 9 in Shanghai and 9 in Shenzhen. The specific varieties are as follows:

Shanghai for government debt reverse repurchase, Shenzhen for corporate debt reverse repurchase.

What we should keep in mind is that one-day loans are one-day reverse repos, and seven-day loans are seven-day reverse repos. At present, the most active transactions in the market are short-term products such as one-day, three-day and seven-day ones.

In addition, the thresholds for buying in Shanghai and Shenzhen are very different. Shanghai city is taller: 1000 yuan is 1 hand, 100 hand rises, that is to say operation needs 100 thousand yuan at least. If you want to sell more, you should add the amount according to the integer multiple of 100,000, 200,000, 300,000… No more than 10 million. There are many close people in Shenzhen: 100 yuan is 1 hand, 10 hands start. If you want to sell more, you have to add up the whole multiples of 1000, 2000, 3000… No top sealing.

The trading time of reverse repurchase of Treasury bonds is the same as that of stocks, which can only be conducted during the market opening time, that is, from 9:30 to 11:30 in the morning and from 13:00 to 15:00 in the afternoon every Monday to Friday. It cannot be operated during national holidays. When will the money come back? The arrival date of reverse repurchase funds is T+1, and the withdrawal date is T+2. Take the reverse repurchase for one day as an example, the purchase on the same day, the next trading day before the opening of the account, that is to say, it will not affect the stock trading on the next day, and the next trading day can be withdrawn and transferred to their bank card.

Note: the market is usually closed on weekends, and the date of receipt will be postponed accordingly. For example, if you buy a one-day reverse repo on Friday, the money won’t come back to your account until Monday. If you want to withdraw the money, it won’t come back until Tuesday.


Next, we will introduce the transaction costs. There is also a service fee for reverse repurchase, but it is very low, with a service fee of 1-30 yuan per 100,000 yuan. For 1,000 yuan, the service fee is only 0.01-0.3 yuan.

Doesn’t that feel like too much profit? This is determined by short-term funding needs. The returns are not very good on weekdays, but can reach 20% or more annualized returns in special times, such as when the market is short of money. Although it can only make money for a day or two, it is also a good cash management tool.

When will the returns be higher? 1. Over the course of a year, interest rates spike at the end of the month, the end of the quarter, the middle of the year, and the end of the year when money is scarce. In terms of a week, the interest rate will be higher on Thursday. 3, from the point of view of a day, every day open half an hour, is a good opportunity to operate, is 9:30 to 10.

One thing to note here is that you have to think very carefully about reverse repos that are trading for a long time, because once you close, you can’t get the money out until maturity. This is different from a time deposit in a bank, which you can withdraw early if you really need it and are willing to bear the loss of interest on the time deposit.

The operation of reverse repurchase, first of all, must meet two conditions: ① open an account in a securities firm, ② at least 1000.10 yuan in the account (0.10 yuan is a transaction fee). Let’s take a look at how the Treasury reverse repurchase yield is calculated: yield = transaction amount yield/interest-bearing days /365. This formula should be easy to understand, because the interest rate is the annual interest rate, so you have to divide by 365 days

The key explains the number of days that calculate interest, this number of days that calculate interest, it is to take up a day to calculate according to actual capital.

So we just said that you have to wait one more trading day for the Treasury reverse repos to be withdrawn, right?

It’s easy to get embarrassed. If you get your money on Friday, you can’t withdraw it until Monday. Isn’t that a waste? Don’t worry, the country considers for us common investor very much, interest takes up number of days calculation according to actual, calculate that is to say 1 day, encounter weekend, calculate interest according to 3 days.

Specific operation demonstration

All right, so much for the basic knowledge of Treasury reverse repurchase, and the following specific operation methods:

Demonstration with the mobile APP of Huatai Securities:

Menu bar trading interface has a [national debt financing] is reverse repurchase. Click on [View all Treasury financial products]

After entering, we will see all the Shenzhen Stock Exchange Treasury bonds financial products. Let’s focus on column 1, column 2, column 5.

Explain the first column: product name. You can see the number of days the fund is occupied. For example, R-001, the fund is occupied for 1 day. R-028 funds for 28 days.

Column 2: annualized rate of return, which refers to the current market interest. This interest rate is variable, depending on the market demand for funds. For example, as shown in the screenshot, lending money for 1 day will earn 3.3% interest, while lending money for 28 days will earn 3.8% interest.

The fifth column, which is the number of days with interest, makes sense, R-001, which gives you one day of interest if you lend the money for one day, and R-002, which gives you two days of interest if you lend the money for two days. And so on.

Take the screenshot of the reverse repurchase operation process on May 14, 2018 to demonstrate for you.

This set of picture screenshot time from now is a little long, but the operation process is the same.

What is the interest rate when the order is placed, then the funds are occupied within the time of the interest rate, as the saying goes, fixed interest. That is to say, you can understand “principal and interest”. How much you earn, the moment you place the order, the fee is 7 cents.

At this point, you may think that the return on reverse repurchase is not too high. It is only 3.2%, which is not much better than Yu ‘ebao. Here is a way for you to make the reverse repurchase rate over 4.0% on an annualized basis, which is no worse than that of banks. We should pay attention to, a lot of bank financial products said is [expected rate of return], the implication is not guaranteed to achieve, and some products are not even break-even, only tell you investment risk is high, medium, low.

What exactly is the operation? In fact, it is very simple. As we have mentioned before, through the analysis of historical data, reverse repo returns will be high at the end of the year, quarter and month. We can capture this feature to maximize the benefits

Time return portfolio strategy This portfolio is the time portfolio of [R-001, R-002, R-003] and [R-014, R-028].

A brief example of this was done in late April

From April 20 to April 27, the annual return rate only participates in R-001 for 7 consecutive days. Why? As can be seen from the figure, the annual return rate can reach 6% in these days, the highest reaches 12%, and the highest reaches 9% on April 26, but the holiday will come soon on 28th. Interest rates will come down again next month.

Therefore, on April 27, I participated in R-028, and the highest R-028 was 4.46%

You don’t have to sell at the high point. No one knows where the high point will be. If you sell at a yield of more than 4%, you have already surpassed Yu ‘e Bao.

A screenshot of revenue at the time

We do not know when the reverse repo peak is on the day. According to the data backtest, we can see that the peak is generally before 10 o ‘clock in the morning and after 2 o ‘clock in the afternoon. So you can just look around this time, without always staring at the reverse repo peak.

The above is the method to maximize the returns by using the simplest reverse repurchase financial products of national debt and analyzing + strategies according to the market rules.