GUANGZHOU (Fund China) - The bullish stock market greets the new year 2008, indicating an unchanged uptrend, the market may shows a bullish slowdown, but investors can continue to gain the high return in the fund investment. The insiders reminded that, this year’s China stock market will face a more complex external environment, investors should decline their expection for high earning in 2008 stock market.

Analysts said that the impact brought by the three uncertain factors, US dollar rally, REM appreciation and the inflation, can not be underestimated. At present, some main institutions generally think that the 2008 stock market turbulence will be enhanced and the operation will be more and more difficult. Funds may also receive a further differentiation, so investors should maintain a reasonable expection for the fund yield.

Although the Equity fund gained an annual average net growth rate of 128.13% last year, the net value doubling is not a “myth” or a norm. With the expection of overall volatility increasing, the absolute yield of equity fund may be smaller than the 2007 and the performance will be different due to the different timing ability. Compared with the index, the fund’s defensive ability will greatly exhibited in the turbulence. And for the equity fund, choosing the fund with outstanding performance in histroy, the fund managers remainning in service and the high shares selection ability are still the basic strategy for investors.

In the low risk return bond market, due to the tigh monetary policy and the stock market uncertainty enhanced, most of the bond funds invested in the new shares’ IPO will rely on their professional experience to deal with the policy changes.

Stock index futures may be launched this year, the insider experts said that the closed-end fund can be a substitute for the stock index futures arbitrage and the close-end fund will upgrade and gain a higher mortagage ratio than the general shares in the future.

2007 is a boom year for QDII fund, and because the QDII risk return depands on its invest market, the QDII encountered a strong beating recently. As a medium&long term invest varieties, the main fuction of QDII fund is diversification and earning a long-term stable yield via expanding the invest scope. It is speculated for a high or huge yield.

Finally, as the old saying says,do not put the eggs in one basket. Fund as a long-term investment tool for financing, there is not a fund that can maintain outstanding performance in any market.

From the angle of risk diversification, investors can set up a rational fund capital allocation according to their own risk tolerance and gain a good earning in the Olympic year.

Copyright Fund China 2008.

You Might Like: