With China’s sustained and rapid economic development, a substantial increase in people’s income, personal wealth has a considerable degree of accumulation, increasing the value of assets people demand continues to expand, more investment in urgent need of foreign investment and open up channels of diversified investment varieties. QDII products allow investors to truly achieve their assets in a global context configured in spreading risks while the full enjoyment of the global capital market results.

1. Investment broader and more opportunities.

QDII products to be invested in the international capital markets (including the United States, Europe, Japan, Hong Kong and emerging markets), making the investment scope is no longer confined to domestic. While the domestic capital market is hot, but overseas emerging markets and mature markets such as Europe and the United States also have attractive investment. Overseas markets do investment allocation, the lower the investment risk global economic growth gains.

2. Decentralized risk optimization asset allocation.

With the domestic capital market is going up, the A-share market as a whole increasingly higher level of valuation, the market gradually increasing systemic risk. QDII products through investment not only globalization can be effectively dispersed single market investment risks, and help to increase risk-adjusted return on investment levels. Moreover, the global investment can to some extent reduce the investment of a single market (such as the United States or Hong Kong) faced by the exchange rate risks. Therefore, in the current market environment, the globalization of investment tool, not only help domestic investors scattered domestic financial risk, but also helps to promote domestic investors to participate in international markets, global sharing of the fruits of economic growth, wealth value.

3. Investment tools rich varieties.

And in the initial stages of development of domestic capital markets, investment fund companies QDII more extensive and more variety, more flexibility and diversity of QDII varieties can invest overseas capital markets in addition to listing of stocks, bonds, but also investment ADS (including GDRs and ADRs, EDRs), asset-backed securities, Public-fund (including equity funds, bond funds, real estate trust funds, exchange-traded funds, etc.), structural investment products and financial derivatives (including forward contracts, swaps, futures, options and warrants). Variety investment for the expansion of access to better investment income laid the foundation.

Copyright Fund China 2009.

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