Raising And Investing Pension Fund

Because of the coming summit of old aged population, the "pay as you go" system will be in the poverty of money. This will hurt the all around economic growth, so the full fund system and the part fund are the only two choices. This paper tries to realize the optimizing management mode of pension fund by harmonizing the idea of insurance actuarial and the method of investment management. According to this idea, the main work done is the following: Firstly this paper expounds the reasons why china must choose multi-pillar part fur by systematically comparing three raising modes and analyzing their characters cases. Secondly the paper shows an actuarial mode of raising pension fund, which ied measure the implicit pension debt of "pay as you go" system in China during system-transforming period. And through this practice analysis get a more actual resub that gotten by using the popular international estimating method. This is very importart adopting policies for the pension in China. Thirdly this paper shows how to realize the investment income rate in the insumode actuarial mode by finding the effective investment method through utilizing the present finance theories and the characters of the pension fund. The paper points out that pension fund should be invested in capital market. And based on the characters of the pension fund its income at risk mode is researched, so does the directing importance of several pricing mode relevant to this mode. Then a correct way is found for the strongly growth both of the pension fund and the capital market in China. Fourthly harmonies the finance engineer and the pension fund's characters to give a full play of finance engineer in the management of investing pension fund, because finance....engineer is a new originaion of finance iunovaion. This is realized by utilizing the charaCersof options to realize the fit pair of assets and debt of the pension fund. And then realize theoptimiZaion of managing the pension fimd.Finally this paPer expounds the aPplication of the dufation and convexity in pension thed.We can decide the proper ratio of assets and liabilities in the Pension fund by the analysis ofduraion and'convexityAll these ideaS will be realized in a short time by the combinaion of the pension fimdand the caPital marke in China.