How to Select Short-term Financial Products Correctly


Short term financial products have three advantages, which are high income, low risk and low investment starting point. Therefore, they have always been one of the most favored products of many stable investors.

1、 Features of short-term financial products

At present, it is a financial management form with high credit rating, short investment cycle and high rate of return in the market. The product investment period is generally about 15-90 days, and the rate of return is generally higher than the annual interest rate of current deposits. At present, the income of short-term financial products is relatively stable.

2、 Three ways to "eat" short-term financial products:

1. See whether the product is guaranteed

When selecting short-term financial products, investors should pay attention to whether the products can guarantee the principal and the income, in addition to the (generally expected) yield of the products. The general income is divided into principal guaranteed income type, principal guaranteed floating income type and non principal guaranteed floating income type. The return rate of principal guaranteed and income guaranteed products can be determined in advance, while the return rate of the latter two products is only an expected value. Whether the expected return can be achieved depends on the operation of the product. It is suggested that investors should refer to the past situation of the product, which is relatively reliable. For example, the product of a domestic financial institution has a 3-month investment period, an annual yield of 8%, and a 4-year 100% cashing. Such a product has a good history, and its income is relatively reliable.

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2. See clearly the investment direction of the product

Secondly, investors should see clearly the investment direction of the product, know the final use of funds, and also be able to accurately judge the risk of the product. For the investment direction of the product, if the product is invested in treasury bonds, central bank bills, commercial bills, bank certificates of deposit and other aspects, the risk will be smaller; If you invest in the stock, foreign exchange, futures, gold and other markets, the risk is relatively high. Investors should learn to judge the risk of products according to the investment direction.

3. See clearly the costs of the product

When purchasing short-term financial products, in addition to the income and risk, we should also calculate the relevant fees, including subscription fees, redemption fees, asset custody fees, sales service fees, etc. Don't underestimate these costs. If multiple costs add up, it will be a large amount, ranging from hundreds of yuan to thousands of yuan. These small expenses will dilute your final gains.

In addition to paying attention to the above three points, you also need to make a final decision based on your investment period, capital use, risk tolerance and other comprehensive considerations. Only through this layer by layer screening can you buy more reliable short-term financial products.


You should notice that in the process of asset allocation, you must adhere to the principle of combining risky financial products with extremely low risk financial products, and resolutely avoid the behavior of asset allocation that ignores risks in order to pursue high returns.

Short Term Finance | Meaning, Features, Sources, Purpose, Advantages &  Disadvantages