Research On Risk Management Of Securities Investment Fund Through VaR

The greatest risk is faced to securities investment funds is financial market risk. Value-at-risk model developed recently is a mathematical model to measure and monitor market risk and is a method that measure financial risk with statistical principle. Comparing with the traditional risk technique, Value at Risk has inconvenience merits. It can show a simple numbers that indicate different financial assets, portfolios and financial institute's all risks, which makes manager comprehend his asset's greatest risk in a time. Studying on the VaR's application in risk management of investment funds is realistic.Based on truth of securities business, this paper above all points out the risk analysis and research. First introduce the purposes and means of securities investment funds, especially for the importance, introduce the VaR theory, including three kinds. Second introduce the risk of securities investment funds. At last, analysis it by two way: how to get VaR; VaR in securities investment funds risk management in how to invest. In the end, show the opinions of my own thought.