Open-ended Fund Investment Strategy

After facing a near-death experience at the first five year of the decade, China's stock market and fund management industry are back on their feet and ready to rock. The asset of open-ended fund has an enormous size, which has been reached trillion CNY. At the same time, more and more people invest in fund management industry. As the statistical data shows, even the highest rate of open-ended fund has been reached 180%.The market analysts think that the high return of open-ended fund is the key feature to drive so much people invests in fund management industry. In the fact, investors are in danger of behaving irrationally. Many investors buy the open-ended fund without any own judgement, but follow the financial experts'recommendation. The mature investors should care about the expected return rate of investment, but not the daily net value of the open-ended funds.This article learns widely from the specialists'theoretical opinions and the current situation in the stock market and fund management industry in mainland China. It summarizes how to invest in the open-ended fund, including what should investors prepare before investment, how to choose the right fund management company and the appropriate open-ended fund, the laws and statutes in our country, the rule of the game in the market, the strategy and the methodology of investment. The investors should become more and more rational, and they should make right decisions before investing by understanding such financial instruments.