Research On Portfolio Theory And Method Of Mutual Fund

The history of mutual fund in our country is not long. It's development needs modern investment theory as guidance. This text was written under that environment .The capital market of our country is still unripe, futures market is not still standard, various kinds of reform measures have not been put in place yet, and option market is at embryonic stage. The modern investment theory should be used and developed under our country's concrete environment. The article has studied on the modern investment theory which includes the basic theories of mutual fund, portfolio theory, investment research theory of stocks and bonds and the application of futures and option in portfolio, has researched emphatically the importance of the basic analysis on building assets structure of mutual fund and the optimization function of futures and option (financial derivative) to portfolio. Finally the article has studied the procedure of the construction and management of the assets and had a real example analysis finally as evidence. Several parts of contents are below.Theories of mutual fund. This part has introduced the concept, characteristics, function, and classifications of mutual fund, has studied emphatically the characteristic and different operation mechanisms of each kind of mutual fund.Portfolio theory. This part has studied portfolio theory, has carried on discussion and research to Markwitz's theory, CAPM and APT .etc, has pointed out the limitation and conditions in practical application that portfolio theory exists in our country..Theory of securities portfolio analysis. This part has studied the basis analysis about the securities analysis emphatically, including macroeconomics analysis, trade analysis, corporation analysis, analysis of inherent value of the stock and the effective market hypothesis theory, has emphasized the importance of basis analysis in portfolio, has studied the inherent value, convexity and yield to maturity of bond, has analyzed positive investment portfolio and passive investment portfolio of the bond.The futures and option. This part has studied the futures and option's function of optimizing the structure of portfolio, has mainly described the hedging function of interest rate futures, stock index futures and the option, has explained the futures mutual funds finally.The construction and management of mutual fund. This part has studied the situation of microeconomic and important industries in our country, has researchedthe method and procedure of constructing the portfolio and discussed the situation and prosperity of mutual fund in our country finally.