GUANGZHOU (Fund China) – The shanghai and shengzheng stock market becomes a sustained weak market and some funds drop when the stock downs these days. The fund redemption is increasing these days, said reportor, information from China Commercial Bank Wanzhou Branch. One of the salesman in the branch said, the offering purchase is smaller and smaller as the stock market continued to fall down, in the earlier day this year, the fund is overheat and the investors had to stand in a long line for purchase especially in the middle of the day.

And he told the reportor, many investor know litle of the fund basic knowledage, most of them were following the public and wanted to become rich one overnight. This would ehance the fund risk, when the fund income is high, then they went and speculate, the fund scale would like snowball rolling bigger and bigger, and the stock index rose higher and higher; while the income is shrinking, then big redemption occurred, it would be a big hurt after the opening transaction, and it might bring a bearish drop for the stock index.

Suggestions from Fu Minghui the vice operation manager of the CITIC Bank, it is good for the investor who has suffered the bearish stock market to hold the fund quota in a long run, the fund income would not be so high as this year’s but it is steable and less risk, the speculator should switch their mind of fund from a rich in one over night’s tool to a invest porfolio.

Copyright Fund China 2009.

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