GUANGZHOU (Fund China) - The equity fund does not go beyond the market in the aspect of industry and weight holding allocations. Among the top growth equity funds(non-index), the majority does not match the the weighted holding industries, it is expected the equity alloaction funds to be adjusted. The euqity(not index) fund rose in an average of 10.45% while the index fund average 12.01%, and the mixed fund 9.65%. The stock market in January 2008 will be in a congestion and rebound trend, the equity funds is expected to gain a yield. It is recommended to concern about the China AMC Large Cap Enhanced Fund, China International Alpha Equity Fund, Guangfa Small Cap Growth Fund, China AMC Dividend Style Fund, and the Guangfa Enhanced Tactical Fund. And the Small & Medium borad, the China AMC small and medium borad ETF is in a uptrend boosted by the stock bullish market and the bond market rebound since December 2007. The bond fund growth averaged 1.99%, the Capital guarantee fund averaged 3.60%. Looking forward to the bond market January 2008, the yield is still not good due to the tight macro economy management policy expection while the bond funds investing with a high investmetn proportion in the new shares IPO may gain a better yield. It is expected the stcok market will rebound in the congestion. Investors should pay attention to the bond funds with a high shares alloaction.

Harvest Bond Fund, Harvest Ultra-Short Term Bond Fund, China AMC Bond Fund, Full Goal Tianli Growth Bond Fund, and the ICBC Credit Suisse Enhanced income bond fund are recommended to be the conservative varieties due to an expection of the high level yield. And when generally considering the money market fund average yield rate level, the historical performance and the fund scale, it is recommended to continue to concern the Harvest Money Market Fund, China Cash Income Fund, China International Money Market Fund, BOC International Money Market Fund, Full Goal Money Market Fund and the CCB Principal Money Market Fund. In the field of clsoed-end fund, the quality clsoed-end fund with a quality fund managemnet will still enjoy the harvest brought by the bullish stock market in the long term. From the short & medium term, the factors that boosted the closed-end fund rise recently, are the high discount rate, dividend expection and the capital demand in the turbulence. The colsed-end fund that can offer dividends or with a high potential dividends are recommended such as Kehui Fund(E-Fund Management), Kexiang Fund(E-Fund Management), Yulong Fund(Bosera Fund Management), Kaiyuan Fund(Southern Fund Management), Jinghong Fund(Dacheng Fund Management), Jintai Fund(Guotai Fund Management), Anxin Fund(Hua’an Fund Management), Fenghe Fund()Harvest Fund Management, and Anshun Fund( Hua’an Fund Management). And in the investment porfolio: the active stype, China International Alpha Equity Fund 40%, Guangfa Small Cap Growth Fund,30%,Harvest Service Value-added industry Open-end fudn30% and the stable sytpe, Guangfa Enhanced Tactical Fund 40%, China Cash Income Fund 20% and the conservative stype, Harvest Bond Fund20%, CCB Principal Money Market Fund40%, and the China AMC Money Market Fund 40%.

Copyright Fund China 2008.

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