GUANGZHOU (Fund China) - The fund varities overall fell down affected by the big borad congestion recently. Relying solely on the simple analysis of the characteristics of various types of funds did not have much meaning now, only along with estimating the big borad market trend, can catch an exacly grasp on selecting the fund varieties in the future.

With the market adjustment gradually deepening, this round of adjustment will be ended by an appear of strong rebound, and the market will continue to go back to the bullish boom.

Investors can keep a certain attention to the index fund in such an environment. That is, first the index fund having stepped into the adjustment was push down again by the big borad weighted shares, China Oil etc.reckoned into the index. The valuation declined further but indeed a part of index fund bubble was piled out. Second, the index fund gains a feature of leading ahead or falling first, as we can see in the period from the beginning of this year to this round adjustment, the index funds’ average yield grows up more than 148%, beyond the open-end equity funds’ average yield. There are more than 200 open-end funds circulating in the market, but only 33 funds’ average return is above the index funds yield. That means the performance of the index fund usually more obviously than all other funds in the bullish market. Therefore, it will be a golden Chance for investors to seculate into the index funds once the big cap is confirmed to be stable or steadfast and is returning to the bullish boom.

If the big borad does not show any stably signs after a break below the half year line, it is reconmmend that investors should switch their attention to the more conservative bond funds. Bond funds focusing on the bond market mainly aims to gain a low-risk but fixed income. The bond funds with low fee and principal secrity guarantee features, is suitable for the small or medium poorer risk bearing capacity investors.

In the unilateral bullish market, the bond funds performance was blot out by the high feedback equity funds gaining little attention from the investors. But the equity funds net value shrunk sharply since the mid-October last year and the bond funds paly an important role in maintaining the net value growth among the over 300 funds. Meanwhile, more and more bond funds are investing in the new shares’ IPO and will enhance the yield strongly. Therefore, when the market is still in the stage of instability, the bond funds will be a good choice for evading risk.

Copyright Fund China 2008.

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