| The Chinese have been advocating the virtues of stout and patience and have been accustomed to saving money and allotting money considerately. With the progress of the times, the modern Chinese realize that saving money is not the only way to keep or increase value of the money. Then personal finance becomes very popular in China for various levels of people. Due to negative interest rate, people have strong desire for other investment methods than saving. In the author's opinion, personal finance can be classified two kinds including living finance and investment finance. The former is to plan all the time in the life for good living standard. The latter is to maximum profits by adjusting the ratio among deposit, stock, and funds with the help of finance planners. Compared speaking, the finance experts are able to supply wider service but with some limitations. Firstly, personal finance is a new thing in China and common people are hard to know and accept. Secondly, the intermediate institution of personal finance is not enough and the service charge is expensive, and also that there are short of experts on personal finance. All the above-mentioned confine the development of the personal finance business. So it is very urgent to change the ideas of the investors. The purpose of this thesis is attempted to find an investment strategy that is easy to know and operate for the investors, so the investors can do investment business by them. The portfolio for personal finance and the summary design of personal finance system will do some good for financial institutions. Financing on line also has some value. The main content and the structure of the thesis are as follows: The preface introduces the background, significance and methodology. Chapter 1 discusses some basic notions about personal finance. Part one introduces some basic conceptions, tools of personal finance in China. In the view of investors, personal finance is to decide investment goal and to analyze the allocation of the assets according to the information of the assets, and then to maximizing personal profits by adjusting portfolio with the help of experts. In the view of financial institutions, personal finance includes two aspects: one is to research and develop financial products; the other is to supply professional service. Financial products are inclusive of stock, deposit, insurance, funds and bonds. Part two discusses the risk and return of the financial products and compare the risk and return of the financial products used for family. Part three introduces the conception, magnificence and principal of portfolio. Chapter 2 discusses the present condition and development of personal finance. This chapter is composed of three parts. Part one discusses the present condition of personal finance in China. In China, the present condition of personal finance is not optimistic. Firstly, the only financial asset people usually hold is deposit. Secondly, the efficiency is too low due to limited financial products and improper ratio among financial products. And lastly, investors don't consider the risk of holding financial products carefully due to limited experience. Part two discusses new ideas for personal finance. Investors should change old ideas and form new ideas, such as: family is also an investor; investment is not only the business of nation. Part three discusses the trendy of personal finance in China: Personal finance should focus on knowledge investment and shift from save to portfolio, from family to society, from visible investment to invisible investment. Chapter three is empirical analysis on the portfolio, which is the core of personal finance. At the beginning of this chapter, the author introduces the method of mean-variances, which includes two procedures: to find the best portfolio of risk assets; and to combine the best portfolio of risk and non-risk assets. An example is given to calculate the optimal portfolio. Then the next part analyzes the portfolio supplied by America financeinstitutions, it is fund that the prude... |
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