Open-ended Fund Investment Strategy

Following to the four most successful open-end funds in this bull market just ended, the paper learns their investment strategies. Combining the academic theories and industrial investment actions, this paper generalizes an investment theory that is suitable to the present situation in Chinese stock market and in time answers the investors their most concern-how to invest to obtain the profits in the next bull market. The paper has a time effect and a strong reality.Stimulated by the good factors of the reform of the joint-stock system settled, the rate of foreign exchange releasing and the economic recovery, Chinese stock market came into the 7th bull market on June 6th, 2005(2005/06/06-2007/10/16, China Shanghai Stock Index rose from 981.50 point to 6124.04 point). Surging forward with great momentum, stocks'price and its trade-amount hit a record high constantly and made a longest big bull market since before. Rapidly developed in recent years, domestic open-end funds as the main organization investors of Chinese stock market improved the investment level of the other investors by the advanced investment principle and financial programming while obtaining great profits in this biggest bull market. How did the funds'managers use their investment strategies to structure a portfolio and whether there has a superior investment strategy in the condition of the bull market? These questions are all that investors hope most to study. The paper studies all the investment performances of the open-end funds in the bull market, and takes the case of four the best-performance funds. After analyzing their investment strategies and the corresponding portfolios, inluding the investment style, the asset allocation of the funds, the strategy of choosing stocks, etc., the paper concludes the best investment strategy and the way to build up the corresponding portfolio.This paper includes five chapters as fellows:In chapter 1, the paper gives a brief introduce to the background, purpose and significance, and introduces the researches of the domestic and international investment strategies.In Chapter 2, the paper reviews the history of the development of the domestic and international open-end funds, and introduces the policies limited by our government and the system of managing and operating the domestic open-end funds.In Chapter 3 the paper introduces the relatived investment theories and the methods to research the potorflio.In Chapter 4, the paper analyses the macroscopical situation and the data of the industries in this bull market. At first, the paper sets the orders according to their investment performance. Then the paper selects four best performance funds, researches their investment styles, the asset allocation of the funds, and the staregies of choosing stocks, which reflect the investment strategies and the menthods to build up potorflio of the funds. At last, the paper judges the investment levels of the four funds by comparing their performances each other and contracting each of them with the ratio of the increase of the China Shanghai Stock Index.In chapter 5, the paper draws a conclusion and makes some advices. According to the result of the research about the highest investment-level'strategy and the corresponding portfolio, and absorbing other funds'successful investment experiences, the paper concludes an investment strategy and the corresponding portfolio that can instruct investors in effect in bull market. Finally, the paper makes some advices to the problems our domestic open-end funds keep yet.The main contribution of this paper is researching and appraising the open-end funds'investment strategies and their portfolio in the bull market in good time. Combining the theories and the practices, the paper draws a conclusion about the investment strategy suitable to the present situation of china bull market. This strategy will direct investors the way to obtain great profits in the next bull market. The innovations of this paper are the time effect and the practical conclusion.