The Research On Theory And Methodology Of Risk Management In Securities Investment Fund

In our country, securities investment fund is springing up in recent years. However, the losses and bankruptcies caused by improper security investment occur one after another, these facts have aroused the awareness that risk management is a prerequisite for fund entities to survive. How to well manage and control the complicated risks is critical problem that the domestic trust investment companies encounter during the period of further developing.This dissertation is comprised of four section and it is divided as follow. The first section, as the introduction, the paper firstly analyzes the connotations and objectives of risk management in investment fund. Secondly, it discusses the core issues on contingent claims of the risk-return and managerial procedures of risk identifying, measuring, controlling and decision-making. Section 2 systemically introduces the theories of portfolio management, asset pricing, arbitrage pricing, options pricing, comprehensive risk management. In section 3, the paper briefly described the general principle of risk management, discusses risks that investment fund may faces and enumerate some measurement method. Farther, author puts forward personally view on application of data mining technology in eluding system risk. In section 4, trying to establish a risks early warning system in trust investment fund, offers means of risk management in order to help decision-making to improve ability of risks control. The paper measures the market risks of trust investment companies with widely used VaR method. At the same time, the paper establishes the base of risks early warning model by combining such method and other risk measurement into risk measurement model.