GUANGZHOU (Fund China) – A share market will be more shakable in 2008. Investors should increase the investment proportion in the fund allocation funds this year from a capital allocation consideration angle. As the equity funds share holding proportion should be remained above 60%, investors who pool too much holdings into equity funds may be held up in the turbulence.

Financing experts from China Nature Asset management recommended an increased proportion in the allocation funds. Generally, the allocation funds’ share position is designed changeably. For example, China Nature Enhanced Characteristics Fund which is calling on dividends recently holds a 40%-95% share positions making it possess an offensive & defensive advantage and will be more suitable for the fluctuating market than equity funds and bond funds which was limited in the share proportion holdings.

Therefore, allocation fund is, un-doubtfully, an effective medium in coping with the long term turbulence for investors.

Copyright Fund China 2009.

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