Investment Open-end Fund Strategies Are Discussed

In recent years, under the background of encouraging the development of institutional investors, negotiable securities invest funds in our country are growing more and more splendidly. However among all these funds, the Listed Open-ended Funds (LOFs) are expanding most rapidly. Especially during the year 2006 and 2007, the circulation of LOFs is greater than the grand sum of before, and the size of them expands from 386.9 billion in 2005 and 694.1 billion in 2006, to eventually 3.043 trillion in 2007. All these changes are based on the bull market during these two years.Behind the great demand of LOFs, there is a hidden trouble that most investors now entered our market impulsively, just because they only focus the rapid advance of funds, without concerning the risk of decline. Some of these investors even treat the LOFs like stocks. A mature fund-holder should not only consider the recent performance of a LOF, but also the Predicted Return Rate of Investment (PRRI). They wont speculate LOFs, but buy funds as a long-term investment. Thus the investigation of investment strategy about LOFs, has important practical meaning and necessity.In this paper, we introduced some general ideas of LOFs; discuss how to invest LOFs successfully, by applying the theories and methods of modern investment on some practical assumptions of the market; probe into the investment strategy, analyze how to justify our strategy against various situations, by referring SSE Fund Index (01.02.2001 - 28.12.2007) as an empirical analysis model.After all, we summarized the investment strategies of LOFs, and found that there was no such a strategy that could fit all changes of the market. When we invest a fund, we must justify our strategy duly against our risk-bearing capability and the market fluctuates. Then we can gain a ideal return rate of investment.