The Choices Of Investment And Consumption Of Products Agent

Since the beginning of reform, China's national economy has experienced a rapid growth. As the level of income increases, the people's investment willingness, awareness and mindset have improved. Also, the demand for financial services diversifies. To develop a retail business, Personal Financial Services has become a significant field in commercial banks. Not only the promotion of Personal Financial Services meet the need of the growing investment, does it expand the service sector of retail business and open up new possibilities for bank's profits. However, the commercial bank's personal financial business in China is still in its infancy, professional skills of managers vary widely and residents have many misconceptions in these wealth management services. So, how to have a integrated development in Personal Financial Services, increase the intensity of development and innovations and offer solid financial products and superior services, have become a exigent research topic.With the customer risk preference as a main line, this paper uses related economical theories such as Life cycle of Mordini Anne and Investment portfolio of Markowitz, research methods such as micro and macro analysis and comparative analysis to take an intensive study in Personal Financial Services. First, this paper investigates the current situation and problem of Personal Financial Services, points out the gap between countries although our commercial banks set the way of Personal Financial Services in policy, idea and mode. At the same time, there are so many problems to be solved in financial products design and marketing service. Second, this paper analyses effects of different attitudes on investment portfolios from the point of view of customer risk preference. On this basis, this paper studies the best consumption and investment choices of financial agent. Last, this paper puts forward some relevant measures to control the risk and design prudent financial products so that banks can get more revenue from Personal Financial Services in the condition of risk-averse and investors can obtain optimal investment and consumption with the maximization of utility.