A Comparative Study On Common Fund's Operation-Before And After The Introduction Of Stock Index Futures

Common fund is one of the most important institutional investors in the stock market, has important influence to the stock market. Common fund will be important investors in financial future market which will be launched soon. The study of common fund management under the condition of short selling of stock index futures, has very practical significance for the development of China's financial futures market and the stock market. This paper discussed risk management and asset allocation, product innovation and investment philosophy before and after the introduction of stock index futures.First, common fund's conventional risk management, and stock index futures to the Fund's systemic risk and liquid risk management applications was discussed. Second, the paper discussed common fund's asset allocation strategy and the use of stock index futures in each stage of asset allocation (strategic asset allocation, dynamic asset allocation, tactical asset allocation). Then, the use of stock index futures in promoting the diversifications of common fund was discussed, providing more risk-yield standard common fund products. Lastly, the paper discussed the influence of stock index futures to common fund's investment philosophy.Finally, the paper summarized the conclusion of the research. The innovation of this paper is based on Chinese common fund's reality, comparatively studied common fund's risk management and asset allocation; investment philosophy and product innovation right before and after the introduction of stock index futures. The conclusion is stock index futures will improve common fund's management skills in these aspects. The paper proved that strategic asset allocation has important influence to China common fund.