Open-Ended Funds Type Asset Allocation

Asset allocation is the primary tactic in securitiesThere are already many studies on how to
investment decisions and is the fundamentalchoose funds in the micro-level. But as for how to
element in determining the safety and benefits ofallocate assets between different types of funds,
securities investment. Strategic asset allocation issuch as stock funds, bond funds, currency funds,
the most powerful means of immunization to thein the macro-level, there are few articles. Based
systemic risk. With the increasing of financialon this, We attempt to introduce the idea of
assets of China's population, the investmentasset allocation to the allocation between different
consciousness is ever-increasing.types of funds to compensate for the
In the current macroeconomic background, theshortcomings of existing studies. It will provide
ability to accurately judge the investment value ofreference on funds investment for investors. It
financial assets, to seize strategic investmentwill also provide an operational method and
opportunities and to select the appropriate assetperformance standard to create a real sense of
is the key to determine the future investmentthe FOF product and to the operation of the
returns. Since the launch of the first open-endedexisting set of quasi-FOF.
funds in September 2001, China has a rapidThe idea of this paper is to solve the problem of
development of open-ended funds. Open-endedhow to allocate between different kinds of funds
funds gradually replace closed-end funds andbased on the theory of asset allocation. Select
become the mainstream of the fund industry. Asthree kinds of most representative funds, which
of August 2009, open-ended funds have reachedare stock funds, bond funds and currency funds.
as many as 527 and the types of open-endedBy analyzing the characters of time series,
funds tend to be more diversified.simulate the forecast model and predicate the
According to the division of open-ended funds byyield of the three types of funds in the first six
Galaxy Securities Funds Research Center, theremonths of 2009. Then allocate between the
are already five categories open-ended funds canstock, bond and currency funds by the optimal
be selected for investors. Facing of the wideportfolio model of risk assets under the condition
variety, profitability uneven open-ended funds, it isthat having risk-free asset and not allowing short
a very practical problem for investors to obtainselling. The result proves that it's necessary and
high-yield by making good use of theeffective to configure between the different
characteristics of the fund, a relativelytypes of funds.
high-yielding, low risk and good liquidity.