GUANGZHOU (Fund China) - Fund investors has enjoyed the harvets of the long term investment in 2007 as the index fund and the active fund are the main options for the 2007 investment. However, some insiders may noticed that the institutional investors’judgement of the A share market will be in a bullish slowdown situation and the index high performance in the past two years would not recur in 2008. But the active funds is an exception and will be beeter reflected in the “special financing” advantage in the more and more complex market.

If inspected from a narrow time span performance, then many dividend funds and indurstry funds will be more prominent in performance. The Wind data showed us that the above type funds are in the top 30 funds from a net value growth in the latest half year such as the Bosera Thematic Industries Fund, Rongtong Prosperous Industry Fund, China AMC Dividend Style Fund, Everbright Pramerica Dividend Style Equity Fund,etc..

A few of public offering funds encountered a net value shrinking due to the A share market turbulence, but the bond funds or funds weight holding in bond can maintain in the forefront in a short time especially bond funds sharing an income of “new fund issued”. From the Wind data, most of the top 20 funds are the bond funds. It is noticed that the public offering fund management capacity will be better reflected in the turbulence, and some funds weight hold in bond also place on the top 20 list in the near quarter.

Meanwhile, seeing from the 2008 fund investment, the closed-end fund will catch more attention than the open-end fund. Because of existing a potential dividends, the closed-end fund with high discount may be concerned by many investors in the old and new year’s transition period. And seeing from the asset administration, the performance of the closed-end fund wll be better-than-expected as there is not a redemption pressure and at the same time, the closed-end fund can enjoy the preferential policy of new fund issue and distribution.

The investors’ cash management style may be changed for the future investment since a cut in the demand deposit interest rate published last week. Seeing from the accumulated yield, there are 25 funds among the 50 money market funds gained a more than 3% accumulated yield. And if compared with the current short term deposit and the demand deposit interest level, the money market fund, cash management tool, will performaned better and more obvious in the future.

The market hot topic is transfering to the individual equity with small or medium-sized market value in the near period. China AMC Small/Mid Cap ETF rised 4.51% ranking among the top 20 in the lastest quarter. Some varieties’ valuation will gradually be concerned by the institutional inivestors along with the decline in individual equity with small or medium-sized. Investors can keep a certain concern in this part this year.

Copyright Fund China 2008.

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