Open-end Securities Investment Funds And Securities Market Stability Analysis

Open-end Funds have been founded for one year in our country, yet they are too young and tender compared to those developed countries. In developed countries, Open-end Funds have a long history and they have developed very quickly in scale, and have been the main force in Securities Market. They play a significant role in safeguarding the stability of Securities Market and promoting Securities Market's development very obviously.This article first explains some relevant knowledge of Open-end Funds; next, it expounds the necessity and feasibility for us to develop Open-end Funds in our country; then it analyzes beneficial actions on stability of Market deeply from macroscopic and microcosmic aspects, and point out we should try our best to develop Open-end Funds according to the current situation of Securities Market in our country; it also analyzes the negative influence on stability of Market by Open-end Funds, and point out we should try to overcome; last, in order to safeguard the stability of Market, it gives some pieces of advice on developing Open-end Funds comprehensively: (1) we should draft feasible cash flowing plan ,distribute assets reasonably, manage with feasible liabilities and standardize the operation of redemption; (2) we should guide investors, control proper scale of Funds , perfect the legislation and standardize actions in the market;(3) we should make multistage decision model, single index model or compound index model to revise leading theory of investment company to avoid risk, (4) we should renovate surrounding for Open-end Funds, broaden fund resource, develop company Funds, exploit new kinds, implement trademark marketing, develop trusting assets management.