GUANGZHOU (Fund China) - For the 2008 China’s stock market layout,the best is to remain holding assets, said Zhang Xiaodong, the Franklin Flex Cap Fund manger. And the best investment strategy for stock investment is long-term holding which will continue to bring an increasing wealth. As for the Franklin Flex Cap Fund,there are six strategies for 2008 market.

According to the Morningstar latest statistics, the Franklin Flex Cap Fund’s last month and the last three months yield were 7.8% and 18.6%, the highest yield among the allocation funds and gain the first return rate(265%) in the open-end funds published at the same period.

As the head of such a fund, when refering to the 2008 investment strategy, ZhangXiaodong said, the first step is not be the first one. His investment philosophy is buy the first-class companies with a second-rate prices under a not contending for first place investment style.

Second, not proficiency, not act

Zhang Xiaodong said the largest premise of the investment is no-losing, rather than earning. There are many investment opportunities in the stock market, it will not produce any serious consequences under a no-losing though.

Third: tend to blue chips. When choosing the blue chip, the most important thing is the management owns a culture of integrity or not. When seeing a company is good or bad, the financial statements is the last one to refer to, the enterprise’s own staff will be the most convincing on the evaluation.

Fourth,”the first valuation” and the Fifth “long-term holding” are closely related. A long-term holding is not a blind holding, it has a assumption that is this company’s valuation is reasonable. The valuation is particularly important,it needs a professional support, it is very difficult for the ordinary investors mainpulate.

Sixth, comparatively concentrated. Frankly speaking, a person’s ability is limited, the investment shuold focus on a target. Therefore, the Franklin Flex Cap Fund’s investment objectives generally limited to about 40 stocks.

Zhang Xiaodong shows a prudential and optimistic attitude to next year fund market,and brought out the 3 themes for the next investment: benefit from the appreciation of the domestic currency, demand expansion and capital integration. And looking forward to the real estate and the financil borad’s higher-than-expected performance in the future.

Copyright Fund China 2008.

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