GUANGZHOU (Fund China) - Equity fund, fund heavy weighted in stocks, and the index fund are still the main keystone attracting investors’ attention in 2008. said the analysts of Hualong Securities, but as have experienced the sustaining rise in the securities market and the increasing varieties in funds, investors will face a choice and only with this choice, can investors enjoy the achievements of the structural bullish market.

In the past year, due to the continued rise in China’s securities market, the equity funds, funds heavy weighted in stocks and index funds dominating utterly in China fund market all gain a good performance. And in 2008, these three types fund will still be the highlight, said Hualong securities, because of the support of economic high movement, monetary constantly activation, RMB appreciation leading the external capital continual injection for arbitrage and consumption driving by the Olympic and a number of arbitrage opportunities occurred in the initial stock index launch.

Here are some areas for attention

First of all, the RMB appreciation is still the main keynote in 2008. And the financial, real estate, aviation industries will benefit a lot from RMB appreciation. Investors should concern about funds that heavy weighted in the above industries.

Secondly, domestic demand expansion will be a big goal in current government regulation angle. The consumption service industry like food and beverage, hotel tourism is expected to perform outstandingly due to the Olympic game. It is suggested to keep attention to funds heavy weighted in the above industries.

Third, from the industry prosperity side, the machinery and automotive industry which are in an increasing mood are still in a high growth period. The fund heavy weighted in these industries should be recommended.

Fourth, the dividend funds are another focus in 2008 due to a high distribution opportunity may be brought up by the listed corporations’ performance release after a new tax laws published in the first quarter of 2008.

Hualong Securities indicated that the closed-end fund will rise again led by the dividend expectation especially the long term big cap closed-end fund with high discount rate. Investors can concern about the dynamic changes in discount rates on the base of net value performance and choose the right investment varieties associated with available yield.

In addition, the bond market is recovering since the second half of last year and along with the red chips’ recovery accelerated this year, the bond funds invested in new share IPO will bring some stable low risk investment yield. And the extent of bond funds associated with the fundamental market is lower than the equity funds. Investors can pick up some bond funds in the investment portfolio in order to decline the overall risk level.

Copyright Fund China 2008.

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