The choice, combination and adjustment behavior of family investment and financial management can be defined as the family's demand preference and investment tendency for one or more assets. This paper analyzes this behavior of family investment and financial management, and how to obtain the benefits and risks of family investment and financial management, hoping to help the practice of family investment and financial management.

Keywords: family investment and financial management, behavior analysis, investment income, investment risk

With the development of China's economy, the improvement of people's living standards and the continuous increase of family financial assets, investment and financial management has become an increasingly important issue. Family investment and financial management is an effective investment in personal wealth in view of risks, which can preserve and increase wealth and resist economic risks in social life, whether it is savings investment, stock investment, foreign exchange investment or insurance investment. Due to the increasing variety of investment, the required professional knowledge is not the same. It is also difficult to fully grasp the investment methods. Family's asset selection, combination and adjustment behavior refers to the family's demand preference and investment tendency for one or more assets. This paper analyzes this behavior of family investment and financial management, analyzes the winning way of family investment and financial management, and its risks and avoidance, hoping to help the practice of family investment and financial management.

First, the choice of family investment and financial management

(A), the necessity of family investment and financial management choices

Family investment is first faced with the choice of investment methods and fields. Generally speaking, they should consider the returns and risks of assets and their mutual constraints, choose one or more assets and decide the number and proportion of their investors. Before the reform and opening up, in the eyes of most ordinary people in China, "investment and financial management = bank = savings office", and personal financial management investment only brought "saving money to generate interest". Nowadays, ordinary people not only have the ability to wear gold and silver, but also have disposable income of tens of thousands of yuan. New investment varieties have gradually become an important part of personal investment and financial management. Financial futures, financial options and other emerging personal investment and financial management tools emerge one after another, which have had a great impact on modern personal financial management portfolio. Among many asset selection methods, it is an asset selection strategy under the condition of market depression to guide families to take advantage of the depression of capital market in time, raise social hot money at a lower cost and choose a way suitable for them to make rational investment.

For example, before 2006, China's stock market was very depressed. Many clear-headed and far-sighted investors dare to borrow money from relatives and friends to raise unexpired certificates of deposit. They use certificates of deposit for bank mortgage loans and deposit loans and borrowed funds in banks to buy stocks. Due to the accurate investment timing and proper investment methods, the result is less than one year. In the second half of 2006, the stock market prospered, and their return on share purchase reached 10. Theoretical and empirical analysis shows that most of the criteria for families to choose assets are to bring new income or increase the relative amount of recent income. Diversify investment according to financial resources and ability, but avoid blindly following the crowd and borrowing money to invest. Financial investment instruments are generally divided into conservative types such as bank deposits and growth types such as bonds and funds. High-risk and high-yield products such as futures, foreign exchange and real estate; Professional knowledge of stamp products, jewelry, antiques, calligraphy and painting. Try to diversify your investment, but remember not to blindly follow the crowd. You should give full play to your personal advantages, diversify your investment as much as possible, and get the maximum benefit.

(B) diversification of family investment and financial management

At present, new investment varieties have gradually become an important part of personal investment and financial management. Financial futures, financial options and other emerging personal investment and financial management tools emerge one after another, which have had a great impact on modern personal financial management portfolio. At present, the main types of family investment management are:

1. Bank deposit. For ordinary people, deposit is the most basic way of investment and financial management. Compared with other investment methods, deposits have many advantages, such as variety, flexibility, stable value-added and safety. After deciding to make savings deposits, investors are faced with the choice of deposit term structure. Whether investors choose demand deposits or time deposits mainly depends on the future income and expenditure, as well as the expectation and grasp of other better investment opportunities in the future.

2. Stock investment. Among all investment tools, stock (common stock) can be said to be one of the investment tools with the highest yield, especially from the perspective of long-term investment, no publicly listed investment tool provides higher returns than common stock. Stock is a certificate issued by a joint stock limited company to shareholders to raise its own capital. It is a certificate representing the ownership of equity, and it is a valuable securities for shareholders to get dividends and bonuses. Stock has become an important target of family investment.

3. Investment funds. Many people want to invest in the stock market, but they don't know how to choose the right stock. The most ideal way is to entrust experts to make investment choices. This investment method is the fund. Investment fund refers to an investment tool that raises a large amount of uncertain social idle funds in the form of trust, contract or company, forms a certain scale of trust assets, and hands them over to professionals of specialized institutions for diversified investment according to the principle of portfolio, and shares the income according to the proportion of capital contribution. Compared with other investment tools, investment funds have the advantages of expert management and excellent scale.

Great potential, scattered risks and considerable benefits. Buying investment funds by families is not only less risky, but also saves time and trouble. It is the best investment tool for family investors who lack time and have professional knowledge.

4. Bond investment. Bonds are between savings and stocks, with higher interest than savings and lower risk than stocks, and are more suitable for middle-income families with more idle funds. Bonds have the characteristics of fixed term, repayment of principal and interest, transferability and stable income, and are deeply welcomed by conservative investors and the elderly.

5. Real estate investment. Real estate refers to real estate and real estate, that is, houses and land. Because buying real estate is a very important investment for every family, families should make good financial planning if they want to invest in real estate; Reasonable arrangement of housing funds, always pay attention to the changes in the real estate market, in order to sell cash when the price rises sharply and get the difference. Among all kinds of investment methods, the advantage of investing in real estate is that it can preserve value. When inflation is relatively high, it is also a period of rising real estate prices. Moreover, real estate can be used as collateral to obtain loans from banks; In addition, investing in real estate can be left to children as a family business.

6. Insurance investment. The so-called insurance refers to a way in which an insurance company collects a certain premium from the insured according to regulations, establishes a special insurance fund and provides economic compensation to the insured in the form of a contract. Insurance is not only a preparation in advance and a remedy afterwards, but also an investment behavior. The premium paid by the insured in advance is the initial investment of this investment; After the insured has the right to claim compensation, he can get economic compensation from the insurance company in case of disaster or accident or security needs, that is, "investment income"; Insurance investment has certain risks. Only when disasters or accidents occur and cause economic losses can economic compensation be obtained. If there is no relevant situation during the insurance period, make insurance investment.

Total loss. Family investment insurance mainly includes family property insurance and personal insurance. At present, the types of life insurance products introduced by major insurance companies, such as disguised capital hook or dividend, make insurance have dual functions of investment and protection. Insurance investment is not the most important in family investment activities, but it is the most necessary.

7. Futures investment. Futures trading refers to the trading form of standardized contracts in which buyers and sellers pay a certain amount of margin to deliver goods of specific quality and specifications at a specific time and place in the future. Futures trading is divided into commodity futures and financial futures, so we should be cautious in the choice of futures trading.

8. Art investment. Overseas, art has been listed as the three major investment targets alongside stocks and real estate. Compared with other investment methods, artworks have the following advantages: First, the investment risk is small. Art is non-renewable, so it has a strong function of preserving value. In the short term, the market fluctuation is not very large, and investors can control their own destiny, so it is safe.

Second, the rate of return is high. The nonrenewability of artworks leads to the strong appreciation function of artworks, so the return on investment of artworks is high. But at the same time, the defects of art investment are also very prominent: First, lack of liquidity. Once you buy art, you may not be able to sell it in a short time. The cycle between buyers and sellers may be as long as several years, decades or hundreds of years, which is unrealistic for ordinary families with relatively poor funds. Second, under normal circumstances, the identification of works of art requires strong professional knowledge, and families and individuals who do not have the ability to identify are still cautious.

Second, the combination of family investment and financial management.

Whether it is financial assets, physical assets or industrial assets, there is a problem of reasonable combination. From holding one asset to investing in more than two assets, from owning only one non-systematic single asset to owning a systematic portfolio asset, this is an important symbol of the maturity of family investment and financial management behavior in China. Many families have realized that the pursuit of family investment portfolio with practical economic value is not to maximize the utility of a single asset, but to maximize the utility of the overall portfolio. Because assets are substitutable and complementary, the substitutability of assets is reflected in the demand between various assets.

Changes in relative prices, public investment preferences, and even income expectations may all present a trade-off relationship. The complementarity of assets shows that the demand change of one asset will cause the demand change of another or several investment products, such as the linkage relationship between housing, building materials and decoration industries. Therefore, from an economic point of view, it is not difficult to prove that holding an asset too much will have a counter-effect, the utility of holding it will decrease, the cost will increase, the risk will increase, and the final income will decrease. This is not conducive to the realization of family investment goals, but the satisfaction degree of assets obtained by families is far greater than that of single assets, which can often be reflected in the holding cost, transaction price, expected income, safety and so on. For example, when the market is in a downturn, the general investment market and the collectible market are in a downturn at the same time, but the market weakness of housing market, postal market, card market, foreign exchange market, stock market, gold jewelry and antique treasures is not the same. Some may be lower than the face value or cost price, and some may maintain a higher price. At this time, clear-headed and discerning investors will choose which varieties with great appreciation potential among the above asset forms to combine in time. Many families in our country can not only use the general investment skills of portfolio more freely, but also pay attention to the substitution and complementarity of asset bath in investment projects, so as to combine long and short, complement varieties, take into account long-term investment and short-term speculation, and also use the skills of entering and leaving the market freely. Self-owned funds and other people's funds cooperate with each other, which greatly improves the income of family investment and financial management. This is a better way to combine assets.

Asset investment needs combination, which can not only benefit but also avoid risks. Many families understand this truth.