A Study On The Portfolio Strategy Of Personal Finance

As a major component of the financial markets, Personal finance played an important role in recently volatile markets. The main purpose of this study is to demonstrate the actual situation of individuals and the proportion of investment instruments are related. And it designs some equations for calculating the proportion of investment tools in personal financial portfolio, so that individual investors develop an appropriate portfolio strategy according their actual situation. For this subject's characteristics, research methods such as, the theoretical research and applied research, qualitative analysis and quantitative analysis, are used.First, the article summaries the domestic and foreign scholars'research on the financial services, products, stuffs and so on. Then with the definition of the concept of personal finance and to look for basis, the life cycle theory, portfolio theory and behavioral finance theory, is theoretical support in this article.Secondly, by comparison and reference to the foreign development and situation, the article analyses the domestic situation and development trend analysis of personal financial, from the macro and micro aspects ,and describe the situation of the main investment instruments. Then it determinates the portfolio as a core of personal finance and elaborates two elements of its external environment and individual factors. Simultaneously it discusses asset allocation, investment instruments'selection and comparison in-depth.Again, the empirical research analyses that the asset situation, life cycle and whether the investment preferences of individual investors are related to investment instruments proportion of portfolio. In addition, the use of multiple linear regressions obtain regression equation about investment instruments'proportion of portfolio, then individual investors can own situation into the equation and directly figure out the proportion of investment instruments, and develop the suitable portfolio.Finally, by introducing the case and applying the earlier theoretical studies and empirical results, it is based on individual investment goal and the actual situation to make appropriate portfolio strategy of personal finance. To this end, for the related issue of portfolio and individual investors improving their investment skills, the article give some suggests.