GUANGZHOU (Fund China) - At present, the main point is that the bullish market is not really shaked despite the stock index fell down 10000 point. The market structure tendency is becoming more and more obviously.

It is an urgent affair to select a fund that is defensive in the down turn and is offensive in the rebound trend for the investors in such a market condition.

When choosing a fund, the investors should focus on long-term view- not only varietyies, but also the fund managements; not only depends on the yield in the bullish market, but also concerning the performance in the bearish market. At present, the fund varieties are quite homogeneous, so the fund managements selection will be preferential to the varieties,especially for the long term holding investors.

Those performance is sustainable, stable and excellent overall managements are the best chocie in selection. Because only the sustained performance can bring a high yield for a long term holding, only the outstanding performance managements can reduced the probability of wrong investment by the investors.

A management that experienced in the bullish and bearish market and can gain a better whole performance, usually is confirmed to have formed a relatively stable investment philosophy and investment style and have a first-class investment management team.

At the same time, due to the wealth of rich market experience, the management’s ability to cope with emergency in the market tends to be relatively important especially in a turbulence. Therefore, the investors should be prudent when analysising the fund managements and varieities short term range, the best is from a long-term perspective and observation.

Choosing a right fund management then selecting a right variety. Those set up for a longer time and owning a continued excellent performance funds will be the best choice. Investors can choose the suitable funds from these varietyies based on individual risk preference.

The risk-control characteristics of the Fund can be seen through its share holding proportion. For example, E-Fund Stable Growth Fund with 65% of the share positon and at least 30% of the bonds holding. This 30% mandatory bond proportion decides the fund’s risk is to be relatively moderate and the fund will be more defensive in the turbeulence. It is suitable for the low-risk preference investors.For such a fund, the investors can be easy to leave the market tracking and estimation work to the fund managers.

Copyright Fund China 2008.

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