The Effection Of Social Insurance Fund On Equity Market

Since 2003 the Board of Management of Social Insurance entrust six mutual fund companies to manage 14 billions fund, it came into public attention of its investment orientation. It is significant to study its effects on equity market.From nature and example, this report focuses on the status and future effect on stock market from mutual Fund 's investment. It states the necessity and disadvantage of fund to be in the market. Then also have suggestions for the situation as well as study on the effect on the equity market from this kind of investment.Basely, the origin source of the effect is that the mutual has more standard management rule and the bigger funding. Especially in 2003, there is resonance effectiveness between mutual funds investment and equity market various. The character of mutual fund is buying high and selling high, leadership in market, and the index of investing trend. As whole, mutual funds has a positive effect to market, including investing in valuable stock, decreasing the up and down of the market, and protecting the shareholder interest. On the other side, it is also important to pay attention to its negative influence, especially during the period that the open-end funds become the main fund in the market. From markets basic, the management needs to need to strength the law, so that can monitor and lead the funds to and encourage funds growth up as well.