Financial investments cover a very broad range and come in various forms. Some financial investments require considerable investment experience and a solid foundation in finance. Obviously, these types of financial products are more suitable for experienced investors and are not widely popular.

So, what are the financial investments suitable for novice investors? Let's take a look together.

Bank Fixed Deposits

Bank fixed deposits can be said to be the most traditional way of managing finances and can also be considered a highly secure financial management method. By depositing money in a bank, you can enjoy stable returns while bearing very low risk. Although banks can go bankrupt, this is, after all, a low-probability event. Moreover, banks nowadays have deposit insurance, and deposits under 500,000 can enjoy full protection.

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Of course, the returns on bank fixed deposits are not high. Even the annual interest rate of long-term large-amount certificates of deposit from banks is only around 4%.

Various Bank Wealth Management Products

Bank wealth management products are not as stable as fixed deposits, especially after the "breaking of rigid redemption." However, relatively speaking, due to the strong overall risk control capabilities of banks, the principal and returns of bank wealth management products can mostly be guaranteed.

When investing in bank wealth management products, it is necessary to carefully read and understand the product description and recognize whether the product is a bank's wealth management product. Some bank staff may even sell insurance and fund products as wealth management products for the sake of performance, which can lead to significantly different risks.The annual return rate of bank wealth management products is currently mostly concentrated between 2% and 6%.

Treasury Bonds

Treasury bonds are also a type of investment product with very low risk, issued by the government and guaranteed by national credit. There are several types of treasury bonds, among which the most common ones we come into contact with are electronic savings treasury bonds.

The investment term for general savings treasury bonds is 3-5 years, with a fixed interest rate, and the annual interest rate can basically reach over 4%, which is relatively higher compared to bank fixed deposits.

Money Market Funds

Money market funds are a type of fund, and because they invest in low-risk assets such as bank deposits and treasury bonds, the risk of money funds is also very low.

Money funds have extremely strong flexibility and relatively stable returns, and are therefore widely used in various "baby class" products, such as Alipay's Yu'e Bao and WeChat's Change Tong, which are very typical money market fund products.

Due to the extremely low risk and strong flexibility of money funds, their returns are usually not too high, with the general seven-day annualized rate around 2.5%.

Other Types of Funds

The money market funds mentioned above are just one type of fund. According to the different investment targets, funds also include: equity funds, mixed funds, bond funds, etc. Of course, there are also index funds that track indexes, which are very common types of funds.Different types of funds carry varying degrees of risk. Clearly, equity funds carry the highest risk, while bond funds carry the lowest risk.

For beginners, the best way to invest in funds is through a fixed investment plan. Among these fixed investment plans, choosing index funds for regular investment is widely recognized as the easiest way to outperform the market returns. Often, a novice investor can achieve satisfactory investment returns through a regular investment in index funds.

Of course, there are many other financial investment methods, such as stocks, futures, options, gold, foreign exchange, private equity, trusts, and equity, etc. However, most of these require a certain level of investment experience and financial knowledge, and are not suitable for novice investors to choose.

Wealth management is a gradual accumulation process, where not only profits are accumulated, but also investment experience and financial knowledge. Starting from the basics, choosing a financial investment method that suits oneself, accumulating bit by bit, making progress bit by bit, and ultimately achieving the expected returns.