A Fund Product Design Based On Value-growth Investment Strategy

Since the first close-ended fund was issued in 1998 in our country,the fund industry has been experienced great and rapid development.Especially as the explosive growth in the security market in our country,the different kinds of funds has been an important and essential part of the market.Nevertheless,compared with the mature funds industries in developed country,our funds industry is still at the very early stage of development,at which the funds products follow the hotspot of investors blindly and ignore the basic logic of security investment,so that the funds products are always influence by fluctuation of security market and have bad influence on the confidence of the investors.But at the meantime,the rapid development and maturation of the stock market,the value invest strategy and growth invest strategy which has been researched for a long time in overseas market gain the acknowledgement of our investors and reflect in the stock market.The invest strategy in this article is based on value-growth invest strategy.The field of finance generally acknowledges that the value strategy and growth strategy,the two mature active invest strategy,can bring stable and remarkable return to the investors.And as the natural development of value strategy and growth strategy,the mixture of strategies has become the focus of research in the field of investment these days.But the core question of the research is to find the best but suitable mixed strategy in the so many strategies,to improve the effect of investment portfolios.Therefore,this article aims at designing an invest strategy to fit our stock market based on overseas mature value-growth invest strategy and a fund product following this strategy,which can bring stable return to the fund investors.The object of the study is Value-Growth investment strategy,using the period between May 2006 and April 2012 as probative term to examine the effectiveness of 8 factors – 4Value factors and 4 Growth factors.Then depending on their significance of superiority portfolios to inferior portfolios,relativity of grouping and market performance,this article chooses 4 effective factors which is more suitable in our stock market.This article designs a fund product with multifactor models based on 4 effective factors,and simulates the achievement of the product between May 2012 and April 2016.The result indicates that the product not only beats the CSI 300 Index significantly but also took the risk on the control.What’s more,compared to other fund product,this product had better market performance and have good competitive power in the funds market.