What does microfinance mean?
Microfinance refers to a small investment in financial management. Under normal circumstances, the funds of microfinance are between several hundred yuan and several thousand yuan. Compared with large-scale financing, the biggest difference between them lies in the amount of financing, and the risk of small-scale financing is lower, the investment threshold is lower, but the rate of return is generally lower.
Microfinance is more suitable for beginners, college students and wage earners who have just come into contact with investment and financial management. What these people have in common is a small amount of capital storage, or a low risk tolerance, and their hands are generally idle. Especially for novices who have just come into contact with financial management, microfinance is a very recommended financial management method, followed by novice financial management income, and finally investment risk. Microfinance can help investors initially establish investment confidence.
Similarly, microfinance products are financial products with less investment, and the investment threshold is generally low.
How to carry out microfinance?
1, rationally plan funds
Small loan investors generally have less capital reserves, so no matter what kind of financial management method is adopted, the allocation of funds should be planned reasonably first, such as how much money to invest in financial management every month and how much to spend on daily consumption. Only by analyzing your own capital needs can you make the next plan.
2. Choose the right financial products.
Appropriate wealth management products can bring great benefits to investors. Small investors suggest that the investment risk of products should be considered first, followed by the expected return. In the case of insufficient funds, the most important thing is risk. According to their own risk tolerance, choose the appropriate risk grade products to reduce the possibility of loss.
Common microfinance methods are:
1. Bank deposit: The minimum deposit in the bank is 50 yuan, with low investment threshold and relatively safe funds. After all, the bank is a formal deposit platform with strict supervision and management, but if the funds are small, half of the income is not very high.
2. Money fund: The common money fund has Yu 'ebao, which is the most typical way suitable for micro-financing. With low risk and high liquidity, it can be used for consumption while managing money.
3. Fixed investment of the fund: The fixed investment of the fund does not clearly stipulate the investment amount, which can be hundreds of thousands or even tens of thousands. Investors can choose to automatically deduct a certain amount at a fixed time to buy funds.