Service Functions Of The Securities Investment Fund Research, And Product Design

As a collective investment method, mutual fund is a kind of service production provided by the fund management corporation. The design of service product is different from that of financial instrument. The design of financial instrument should base on the decomposition of the cash flow. The design of service production should base on the analysis of its function.Based on the theory of financial intermediation, the functions of mutual fund include information producing, liquidation service, and delegated monitoring and risk management. These functions are the reasons why the mutual fund exists and develops. Whether mutual fond can substitute bank deposits and stabilize security market and enhance the efficiency of security market is uncertain.In the view of service production, mutual fond design should concern three parts: structure, fee and size.The structure design can be decomposed four parts: organization form, operation manner, investment object and investment strategy. The organization form of mutual fond is decided by the background of law and culture. The operation manner of mutual fond is connected with the stages of development. The investment object is influenced by the size and structure of security market. The investment strategy is chosen according to the pricing efficiency of market.Mutual fond fee design mainly discusses the kinds of fee and the mechanism of fee decision. It is important to distinguish the property of fee. The fee structure should be designed with diversity. Especially the management fee should be compared with a completive benchmark. Concerning the scale efficiency management fee should be decreased with the fond size.The dissertation discusses the size from three points of view: single fond, fond management corporation and fond industry. The optional size of a single fond is determined by the ability of manager and the liquidation character of investor and the expected return of fond. Fund management corporation has scale efficiency. In order to make profit the size of a management corporation must exceed the balance point of profitand loss. The size of fund industry is the equilibrium resulted from the competition between indirect and direct investment methods.It is shown by the development of fund in our country that mutual fund design must base on its functions. It is difficult to sale mutual fund if it is not properly designed. We must make function deepening the basis for our mutual fund product design and make structure optimizing, size moderating and fee reducing the measures to take.