GUANGZHOU (Fund China) - At all times, whether the fund should bear the responsibility of stabilize the market is a focus of controversy. According to media reports, the Fund Commission for the Supervision Department in the recent meeting stressed that the fund industry should seriously consider how to play the role of institutional investors, regardless of how the market changes, and must always remain calm and sober, must always adhere to long-term investment philosophy and values, and consciously safeguard the market order and stability. As a Regulator, they hope that the market volatile background to assume the responsibility of stabilizing the market. so the Bosera Fund to sell such a large-scale stock is obviously a “disobedient children.”

Review Chinese Securities Investment Funds early stage of development,the fund industry has been given too much responsibility and mission.In fact, the mission of the fund industry can be summed up very simply,that is, “by the people entrusted generation financial management,” according to the contract diligence for the fund holders to achieve return on investment. However, in the development of the fund industry, “guiding investment philosophy,” “stabilize the market environment” has been included in the fund industry and the responsibility of the mission. Today, this is still widespread. Early in the development of the securities market, from individual investors as the main institutional investors to the market to the main market for the process of transition, the representative of the Fund for institutional investors may play an objective role of the above. However, as the market gradually matured, institutional investors size, type of diversification, the Fund can not assume the role.

On the one hand, a mature stock market is certainly a diversified investment philosophy can be inclusive of the market, but could not have been a single idea-led investment, the Fund initiated by the value investment philosophy may become the mainstream of the market for some time, but not completely deprived of non-mainstream investment philosophy of survival space; On the other hand, institutional investors with diversification, the Fund may only follow the market trend, it is impossible for the so-called “stable market environment” and to reverse the market, otherwise, can only lead to failure, and ultimately suffered a loss will be a fund holders.

In the miserable decline of the market, the Fund does not assume the responsibility of stabilizing the market, in fact, in the game with the industrial capital, the Fund also haven’t the ability to stabilize the market, the Fund took advantage of the opportunity for success has been achieved, contrarian death Resistance is bogged down in the quagmire of the Fund. To have a long vision, as the industry maturing, the Fund must return to the crux of the responsibility and mission - diligence for the fund holders to achieve return on investment.

Copyright Fund China 2008.

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