From: China Securities News
Compiler: http://www.fundcn.org

“Fund investors are concerned, the reference to the mature markets operating strategy to distinguish the use of funds, to measure their own can be the ability to bear the risks, control the level of market risk, due to stock-based funds, bond-type funds, money-fund portfolio mix. can be invincible, as happy-China. “Watching on the card index fluctuated, Taiwan senior financial expert suggested that Chen Zhongqing.

Chen Zhongqing have the title of “Godfather of the Taiwan Fund.” Reportedly, He then Taiwan and the trend Chan and other experts together founded the Taiwan heavyweight — SMART financial weekly magazines, far-reaching implications, they write the “personal financial manual,” “Personal Saving Manual” “Common Fund Investment Handbook,” 17 financial books, manpower in Taiwan reached a stage.

He said, at this stage, the mainland market and the trend of the late 1980s stock market in Taiwan is very similar to the pre-crash, bull market move up the shocks are a normal phenomenon, due market adjustments. Long term, the bull market pattern will not change. But the previous crash did too fanatical investors realize that equity-related investment (including funds) with the existence of a risk, not only to rise or; So when the market is gradually rising. it is necessary to raise awareness of risks.

He suggested that the investment fund, we should pay attention to avoid risks of operating strategy, flooding not only to be courted with the stock market has risen sharply in the stock-fund; stand in the index above 4,000 points, The investment fund will not pay attention to the allocation of those with the stock market crash of the non-Equity Fund and the Fund for the combination of rational and scientific investment.

Fixed income fund essential

He said that the United States is the world’s largest fund market, and most of the mainland-based stock fund comparison, American Equity fund asset size of the total size of 57.53%. Bond-type funds and money market funds accounted for a 36.25%. This shows that the United States investors to use lower-risk equity funds to construct its own investment portfolio. Taiwan’s situation is, as of April this year, total assets of the fund industry size over 2.0688 trillion yuan NT Taiwan’s stock market investment of the fund size of only 12.51%, overseas stock investment funds accounted for 13.73%. investment in bonds and money market fund assets account for the 51.36%.

Chen Zhongqing said that Taiwan’s situation, Taiwan fund market is relatively low risk of fixed-income funds have become investors Construction Fund’s investment portfolio indispensable weight To element. If we take a look at Taiwan’s stock market in the last 20 years of change, we can also see increased risk with a fixed income fund association. Taiwan’s weighted stock price index in 1986 at less than 1,000 points but in three years at the time climbed all the way to the February 1990 high of 12,682 points, Then in the eight months fell to more than 2,000 points in 1990 on the back end of 4000, After twice again 10,000 points rates, currently at 8,200 points, up and down. In other words, Taiwan investors have repeatedly experienced big ups and downs in the stock market, many people suffered painful losses, The risk of the stock market have a certain understanding. Therefore, the stock-fund market share relative to a lesser weighting.

Chen Zhongqing said that a person investing in the stock related investment should refer to the proportion of such a formula, 100-age = invest in stocks related to the proportion of investment percentage. For example, 25-year-old person can be 75% of the assets invested in stocks or stock-based funds; 45-year-old investors only 55% of the assets invested in equity-related products, the allocation of the remaining assets in cash, Bonds or bond-type funds; to the age of 65, should focus on fixed-income investments only 35% of the funds to be invested in equity-related investments. Because of their age, the greater the ability to bear the risks are getting weaker.

Copyright Fund China 2008.

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