In investment and financing, the mandatory and optional consumption industries are two very important modules. Understanding them can help our investors more easily master investment skills and obtain higher returns. So what is the difference between the mandatory and optional consumption industries? Let's study together.
Compulsory consumption industry is a kind of inherently excellent profitable industry. Compulsory consumption industry is also known as "daily consumption" and "major consumption". The necessary consumption industry is mainly to maintain various consumer goods in our daily life, such as drinks, alcohol, agricultural and sideline products, etc.
The necessary consumption industry is also the industry with the most stable demand. No matter what the economic situation is, daily consumption is indispensable. It is precisely this very stable demand. The consumer must industry is also one of Buffett's favorite industries. Many of Buffett's famous investment cases are in the consumer must industry, such as Sisi Candy, Coca Cola, Heinz Food, Gillette, etc.
There are many consumer industry index funds in China, but only a few of them are suitable for our ordinary investors with a scale of more than 100 million. It is suggested that you choose the CSI consumption index with a complete range of investment enterprises. The CSI consumption index is composed of stocks in industries that must be consumed from the CSI 800, which is relatively comprehensive.
Index fund tracking CSI consumption index:
Huitianfu Zhongzheng mainly consumes ETF connection
From the name of optional consumption industry, we can understand that optional consumption is an industry that we only consume when we have money. It can improve the quality of life, and can survive without spending money. Such as high-end mobile phones, cars, household appliances, etc.
Optional consumption is not a necessity of life, so the stability of the demand for optional consumption is weaker than that for necessary consumption. If we don't have much spare money, we can not spend it. However, when we have more spare money, we will increase the expenditure on optional consumption, which is a feature of the optional consumption industry.
Optional consumer industries benefit from the increase of per capita income. Only when per capita income increases will there be funds to consume. At present, there are few consumer industry index funds available in China. Only Guangfa optional consumption connection and Guangfa optional consumption connection C.
