From: China Galaxy Securities Research Center
Compiler: http://www.fundcn.org

Recently, the stock market rates as a significant shock, and continuous decline in the stock market index, the market focus of the continuous downward, NYSE volume dwindling. As regards the development of the stock market trend has become a sensitive issue, and this should be relative, of the Fund’s investment strategy concern.

From an investment point of view of the subject, the existing fund can be divided into three categories : (1) to the stock market as the main target of investment funds; (2) to the bond market as the main target of investment funds; (3), money market instruments, as the main target of investment funds. Investment fund’s basic strategy is to one based on market rates in the development of a general trend analysis and judgment. On this basis the current market price background, for the first category of the Fund’s investment strategy is a need to seriously reflect on the time.

Cautious Index Fund holders

To the stock market as the main target of investment funds

In accordance with China Galaxy Securities Corporation Fund Research Center of the fund classification standards, to the stock market as the main target of investment funds including stock-fund shares, stock-index fund Partial shares mixed-type fund, a mixture of balanced funds, other categories of special strategies Fund (ie life cycle funds, are currently in the stock market as the main target of investment). From an investment point of view style, which funds the five stock-index funds are passive-style, four other funds belonging to the initiative-style. Both types have different investment styles of fund investors also need to reflect further on the new situation breakdown of the investment strategy.

(1) belongs to the passive-style fund

As we all know, the index-fund performance characteristics is to simulate the movement of the underlying index. provide investors with access to a market with an average income level of considerable investment opportunities, If the foundation rates expected to rise in the limited space, the index-fund investment value will be greatly reduced. As regards the future development of the stock market trend is only three : to continue to climb, the SEA concussion, began to fall, For index-fund investment strategy also from three perspectives to consider.

First, the re-rise. If this is the case, then the stock market will have room to rise much? This space will be in a long time to achieve? If space is limited, if time-consuming, index-type fund for the investment value is relatively low. From this year because of the bull market rates, Index-fund investors in the most appropriate bull market rates in the rapid development of the broad background for investment. Second, the SEA concussion. If the stock market prices will do so, the index type of investment could lose value WATER shocks in the market structure, investors will not have the final number of receipts. Third, began to fall. If the market bears go, some index-fund investors need to avoid market risks.

(2) belongs to the initiative of the Fund-style

These funds mainly stock equity funds, hybrid category partial Unit Fund, a hybrid category-balanced funds, Other special kind of strategy fund four categories, The four categories of funds for a basic investment strategy is to pay attention to a certain extent, avoid the investment risks. Therefore, no one should be complacent right investment fund, for pre-performance of the prominence of the Fund, In fact, investors should consider whether it should continue to hold.

In specific fund categories : (a) Balanced funds can be permitted in contracts within the scope of, In regards to the market a clear analysis and judgment of the time and take the initiative to increase the asset class configuration. Judging from the current balance-of the performance of the Fund, active. The largest category of the correct asset allocation for the market shocks of the fund raising proceeds helpful, Most fund managers dutifully working. (2) Equity Fund’s overall high yield, fund managers were active in the operation of the results, pre-leading performance of the Fund remained focused.

Focus on money market funds

Other types of funds

Here are the two types of funds : the bond market as the main target of investment funds in money market instruments as the main target of investment funds. For the former, due to the current market-up to the expected very strong, and such funds are not suitable for investors.

As for the money market instruments as the main target of investment funds, is the focus of attention emphasized. Since money market funds entirely to the stock market risk insulation, and the good performance of the Fund which may be not less than the same period a year regular bank deposits interest income after tax, Liquidity is not inferior to the demand, and that is to avoid risks or access to certain basic income, money market funds should not be forgotten you.

Copyright Fund China 2009.

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