The Risk Of The Securities Investment Fund Management

This dissertation is on how to control the risks of securities- investment-fund both in theory and in practice. It analyzes and discusses investment-risk-control-and-management systematically in theory; then based on its current situation and development trend here in China, the paper provides corresponding suggestions and conclusions. Meanwhile, this dissertation tests and proves the author's viewpoints on securities- investment- risk-control by the way of empirical analysis. Besides that, in the probe of the existing problems of Chinese investment-risk-control-and-management, in comparison with its development in China and that in the rest of the world, the paper concludes the essential principles and operation systems of securities investment fund. With the experience earned from the history of the foreign investment development and the author's working experience in the financial companies in Hong Kong and Macao, the available way of Chinese securities-investment-fund-risk-control-and-management would be made much clearer in the dissertation.This paper is divided into seven parts. Chapter One is an introduction. It is concerned with the theoretical and practical significance of the thesis topic, the review of the studies of the securities- investment- risk-control-and-management, and the methodology of this research.Chapter Two is about what is securities investment fund and its process of developing, and it is about the effect that the continuous market capitalization may bear on the investment management. In order to set up a basic framework for a further discussion, right before entering the detailed and thorough analysis of various risks, this chapter is given to fully introduce the characteristics and formation of the securities investment risks and the basic developing process of the risk's control and management.Chapter Three analyzes in detail why there is management risks of securities investment funds and the structure of the risk's control. In contribution to build up a company's risk-proof management system, with the help of Principle-Agent theory, this chapter is both a logical and canonical illustration of the formation mechanism of risk management of securities investment fund, and it is concerned with the proper policy making system internally and externally to prevent the funds from management risks.Chapter Four is about the theoretical and empirical analysis of the market risks of the securities investment fund. With intention to draw out market risk precaution methods on securities investment fund, through the analysis of many historical evidences and present cases, this chapter is given to tell readers how the market risk originates and to discuss the conditions that make the abroad theory of Asset-Portfolio theory available here in China and further, it evaluates and measures the market risks of Chinese securities investment with that theory.Chapter Five is concerned with the theoretical and empirical analysis of liquidity risks of mutual funds. In order to sum up liquidity-risk-proof advices, this chapter is given to both canonically and demonstratively illustrate the formation mechanism of liquidity risks of mutual funds and furthermore, to evaluate and measure their liquidity risks under the current conditions of China.Chapter Six is a study on the innovation and development of the products of risk management of securities investment fund. Through innovating the products of securities investment fund, bettering the mechanism of the securities investment market, and raising the flowing speed of the market, we can improve our risk management tools.