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• Compare “Wheai Eand Funds on Profits and Risks

Compare “Wheai Eand Funds on Profits and Risks

In Taiwan, the interest rate of savings has been decreasing since 1980s. Therefore, many people turn their savings to commodity funds and “Wheai” for investment. Investing in commodity funds is one of new investments in Taiwan. There are two ways to use commodity funds for investments. One is to invest in commodity funds only. The other is to invest in commodity funds as one of investments in their investment portfolio. In theory, an assessment of a portfolio is by counting its expectation of profit and calculating its deviation of risk. According to this theory, a diversified portfolio can gain more profits and avoid more risk. Therefore, diversity is the key. “Wheai” is a popular investment among the people in Taiwan for a long time. It is easy to gain over ten percent of profit by joining a “Wheai”. Members do not need a big amount of money to join a “Wheai”. They only pay a certain amount of money at each meeting. Whenever they need money, they have rights to withdraw their own money and borrow money from other members by betting the highest interest at a meeting. But , there is a risk of “Taou Wheai”(倒企E which is the leader of “Wheai” runs away with the money or one or several members do not pay back the money after winning the bed and receiving the money. Therefore, in order to avoid the risk, it is necessary to make sure each member’s and the leader’s financial credit before joining a “Wheai”. It is very difficult to figure out the risk of a commodity fund for most people. Even though the risk of a “Taou Wheai” can mean a total loss of the investment, it is much easier to figure out the risk. 

→Japanese Ver.

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