At present, there are more and more financial products that you can find in the financial market. Some friends are not very knowledgeable about financial management, and when choosing financial products, they do not know whether it is better to choose a shorter one or a longer one. Here, for you to talk about this matter in detail.
We can consider three aspects when judging whether it is good to buy short-term or long-term financial management. These three aspects are: the use of funds demand, the return situation, the degree of risk. Specifically as follows.
The use of funds demand: If it is a closed financial products, then it can not be taken out before maturity. If people have the need to use funds in the future, then try to choose short-term rather than long-term so as not to delay their affairs. Also, people should be prepared for emergencies.
Earnings: According to the current situation in the financial market, it is not necessarily the case that short-term is less earnings, long-term is high earnings, we should compare the expected annualized rate of return, or past annualized earnings, and try to choose relatively high.
Risk level: when judging whether it is good to buy short-term or long-term financial management, we must also consider the degree of risk. According to their own risk tolerance to choose. Generally speaking, short-term because of the short time, the future uncertainty is low, the risk will be on the low side.
In summary, the financial buy short-term good or long-term good to integrate their actual situation and the characteristics of the product to judge, not just look at the term to make a simple judgment.