Choice Of Social Security Funds Diversified Investment Tools

the social security fund is far from enough to invest only into the bank deposit treasure bills and stocks and the diversification of investment tools will be necessary. Therefore, it should be considered seriously to enlarge the involvement of the social security fund in investments with higher revenues and lower risks, such as equities, industries, overseas bonds, even the real estates. At the same time, the management of the social security should be improved and tightened to scientifically and efficiently choose between different investment tools.The paper is composed of seven parts. The first part is the preface, mainly stating on background and meaning. The second part states on the significance of the reinvestigation of the social security fund and the feasibility of reinvesting the society security fund, In the third part, the paper briefs on three foreign countries where the operation of the social security funds has achieved ideal outcome, in the hoping that these will help China make the correct choice in deciding investment tools. The fourth part is mainly on the investment tools that China's social security fund has been involved at present, analyzing on the pros and cons of different investment tools. In the fifth part, the paper demonstrates that the choice for the future investment will inevitably concentrate on five investment tools, namely, equities, industries, overseas investments, real estates and bonds. The sixth part of the paper explains how to scientifically allocate and manage the investment tools proposed in the paper. The seventh part tell us it is necessary to invest into- equities, industries, overseas, real estates and bonds, which is determined by the nature and investment principle of the social security fund.