The Use Of Valuation In The Investment Fund

The Investment Fund has got great development in recent years in our country, which has several advantages: expert-management, well risk-control, efficient-investing, etc.Most of the investment funds are stock-investing funds. While the fund manager is making the investing decision, company valuation is the necessary and useful tool. There are a lot of valuate models, including discounted cash flow valuation, relative value ratio, B-S model, etc. Different models have their particular applicability. Investment fund has two obvious features in company valuation: the one is that it invests many companies that belong to different industry and fields; the other is it invests publicly. The investment funds do not set up the strategy relationship with company normally and it does the investment based on the market information. So, the efficiency of the capital market plays a important role in the valuation. Umbrella fund is the innovation in the fund field. The paper analyses the valuation methods and try to adapt them to meet the special need of the investment fund, especially the "umbrella" fund.