Study on the Present Situation, the Problems and the Risk Analysis of Securities Investment Fund in China
Study on the Present Situation, the Problems and the Risk Analysis of Securities Investment Fund in China
1. Scope/ rational of project
The securities investment fund in china actually is quite similar with the mutual fund in USA. China is one of emerge markets in the world. Compared with the developed market, it still has so many problems that have to research and analyse. Mutual funds started in the second half of the 18th century in the Netherlands ( Rouwenhorst, 2004). In the 21th century, the number of mutual funds in the U.S. had already exceeded the number of securities listed on the New York Stock Exchange. Investment company institute (2002) mutual fund factbook reports more than 8,000 mutual funds in the U.S. in 2002, compared to 2,800 firms listed on the New York Stock Exchange. Madhumathi and panwar (2006) defined that mutual funds is one very interesting topic that not only to researchers in the world, also to all of investors. They thought that the investors preferred to invest the mutual funds as a investment option because mutual funds is a medium-to-long term investment option. That the reason why that the funds are popular for investors.
Over the past ten years, china securities investment funds had a huge development in china. By the end of 2001, there are 14 securities investment fund management companies, and those companies operated and managed 48 closed-end funds and 3 open-end funds. The total value of closed-end funds are 70 billion yuan. The different types of investment fund occurred due to this situation (Guo, 2004). With the speed of development of securities investment funds, there are a lot of problems during the process of development. Especially in china, due to the time of development of securities investment funds is not too long, the lack of theoretical research about securities investment funds, the lack of knowledge of fund’s function, location and operation mechanism. In the process of operations, some
1. Scope/ rational of project
The securities investment fund in china actually is quite similar with the mutual fund in USA. China is one of emerge markets in the world. Compared with the developed market, it still has so many problems that have to research and analyse. Mutual funds started in the second half of the 18th century in the Netherlands ( Rouwenhorst, 2004). In the 21th century, the number of mutual funds in the U.S. had already exceeded the number of securities listed on the New York Stock Exchange. Investment company institute (2002) mutual fund factbook reports more than 8,000 mutual funds in the U.S. in 2002, compared to 2,800 firms listed on the New York Stock Exchange. Madhumathi and panwar (2006) defined that mutual funds is one very interesting topic that not only to researchers in the world, also to all of investors. They thought that the investors preferred to invest the mutual funds as a investment option because mutual funds is a medium-to-long term investment option. That the reason why that the funds are popular for investors.
Over the past ten years, china securities investment funds had a huge development in china. By the end of 2001, there are 14 securities investment fund management companies, and those companies operated and managed 48 closed-end funds and 3 open-end funds. The total value of closed-end funds are 70 billion yuan. The different types of investment fund occurred due to this situation (Guo, 2004). With the speed of development of securities investment funds, there are a lot of problems during the process of development. Especially in china, due to the time of development of securities investment funds is not too long, the lack of theoretical research about securities investment funds, the lack of knowledge of fund’s function, location and operation mechanism. In the process of operations, some