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Financial assets are the right to exchange money and future money.
Examples include cash, deposits, stocks, bonds, and investment trusts. Understanding financial assets makes it easy to understand the basics of asset formation, decentralized investment and risk management.
In this article, we will organize the basics of financial assets, the differences between real assets, the characteristics of each type, and the thinking for beginners.
What is financial assets?
Financial assets
“The right to make money and money”
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If you say a little more, you can use it as it is in cash, things that can be purchased on the market like stocks and bonds, and the right to receive future interest and dividends.
Typical financial assets include:
| Finance | 内容 |
|---|---|
| Cash | Money that can be used as it is |
| 預金 | Money deposited in banks |
| Shares | Company |
| Bonds | The right to lend money to a country or company |
| Investment Trust | Products to invest in multiple assets |
Financial assets are the basic concept of building a household asset.
Difference from real assets
There are real assets in the way of thinking to be a pair of financial assets.
Real assets are valuable assets for real things.
The following examples are:
- Real Estate
- Gold
- Art
- Car
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ing the difference between financial and real assets is as follows:
| 項目 | Finance | Real Estate |
|---|---|---|
| Type | Data Contracts and Rights | Home |
| Easy sales | relatively high | Low |
| 管理 | Easy | Storage and maintenance costs required |
| Price change | Impact of market interest and corporate performance | Effects of Supply and Demand Value |
| Example | Deposits, Stocks and Bonds | Real Estate, Gold, Art |
It’s not bad. It is important to understand the characteristics of financial assets and real assets in asset formation.
Why financial assets are important
Financial assets are important because they are a means to define assets for future living expenses and purposes.
You can store money just by deposit, but if the price rises, you can reduce the amount you can buy.
On the other hand, you can expect the following revenue by株式ing stocks, bonds, and investment trusts.
- 利息
- 配当
- Distribution
- More
However, there is a risk of price、ctuations and original cracking as much as the financial assets that can expect return.
In other words, in financial assets, it is necessary to think both "increase" and "protect".
Major financial assets
1. Cash and Deposit
Cash and deposits are the most common financial assets.
Features are as follows:
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- Small priceがctuations
- Living Defense Fund
On the other hand, there is a weak face in the inflation.
It is important not to turn everything into investment, but to prepare for living and sudden expenses.
2. Shares
Shares are held by the Company.
By having a stock, it is possible to increase the value by the growth of the company and receive dividends.
Features are as follows:
- Expect growth
- idends may be received
- There are also stocks with shareholder benefits
On the other hand, the stock price changes greatly. It is possible to crack the original because it is influenced by corporate performance, interest rate, economy, exchange rate, investor registration etc.
3. Bonds
Bonds are a mechanism to lend money to countries and companies.
National bonds, local bonds, corporate bonds, etc.
Features are as follows:
- Earn interest income
- Expires
- Price movement may be lower than stock
However, there is a risk for bonds. If interest rate rises, the bond price may be lowered, and the credit risk of the issuer is also available for corporate bonds issued by the company.
4. Investment Trust
The investment trust is a product that invests in shares and bonds by experts and operating companies.
Features are as follows:
- Easy to start
- Easy to invest
- Can invest in domestic and foreign stocks and bonds
For beginners, it’s more decentralized than choosing individual shares.
However, there is a risk of price、ctuation in the investment trust, and there is a cost such as trust compensation.
Points that beginners should be aware of
Separate "increase" and "protect"
When thinking about financial assets, it becomes easier to understand by separating roles.
| Property | Main role |
|---|---|
| Cash and Deposit | Protect and prepare for urgent expenses |
| Shares | More |
| Bonds | bilization |
| Investment Trust | Disperse and increase |
The higher the return, the higher the price。ctuation risk.
The higher the return, the better the price、ctuationsUnderstanding this premise makes it easier to avoid excessive investments.
Decentralized investment is important
When you focus on one asset, the impact of the value falls greatly.
For example, if only shares are biased, the stock price will be weakened. Only cash is biased.
Therefore, it is important to think separately in asset formation as follows.
- Money left as living expenses
- Money to use in the near future
- Long-term money
Before you start investing, you can easily manage your risk even if you just divide your assets into three.
Common misunderstandings
| misunderstanding | In fact |
|---|---|
| Financial assets only stock | Includes deposits, bonds and investment trusts |
| All investments are dangerous | Risk changes in products and management methods |
| Cash | There is a possibility that the purchasing power is lower with inflation |
| High Yield | High yield risk |
| Dispersed and not damaged | Not to avoid loss completely |
Financial assets are the right to make money and future money.
Examples include cash, deposits, stocks, bonds and investment trusts.
It is easy to understand if you think in the next order.
- Classify your assets into cash, deposit and investment products
- Check the money left as a living expenses
- Think about the money that can be used for a long time
- Learn the differences between stocks, bonds and investment trusts
Financial assets are important not only to increase, but also to protect them. It is important to think about the balance that suits you while using long-term, distributed and integrated thinking.