Investment Strategy Of Structure Fund

This article is mainly about the study on investment strategy of structure fund. The purpose of this study is to introduce structure fund in a comprehensive way for the investors and deepen their understanding of it, then providing them a basic method to analysis structure fund. Based on this, I hope this article can lead more investors take part in structure fund market and invest in a rational way. This can not only promote the structure fund market continues expanding, operations be more transparent and specification, but also stimulate fund companies make innovation actively to enrich their products in structure fund market, then continue to promote the healthy development of China's fund industry.Structure fund is an innovative fund, which comes from the relatively mature structured funds in foreign countries. The purpose is helping the fund companies to break the bottleneck of development in our country. Its core idea is reconstructing the fund's risks and benefits by designing a different share of it, which include priority share(A class) and enterprise share(class B), to meet the different needs of investors risk-return preferences. This distribution of different risk and return is achieved by adding leverage.This article is based on theory, through in-depth reading all prospectus of structure funds on the present market, then make summary and research. I will give a relatively complete investment strategy by analyzing the structure funds' structure and operation, risk-return characteristics, leverage, discount or premium rate, conversion, valuation and matching convertible arbitrage mechanism. Finally, considering all these points and applied to the simulate carry trade, then draw final conclusions.