Study Of Open-end Fund Sales Channels

Since China's first Western-style open-ended fund was launched by Huaan Fund Management Co. Ltd in September 2001, the open-ended funds in China have taken on quite a new look after more than a decade's development. With the coming of the new century, open-ended funds are faced with unprecedented opportunities to seek further advancement. Nevertheless, the existing marketing mode is becoming more and more a block on the way of open-ended funds' in-depth and sustaining development. Considering various sales modes and taking into account the actual situation of the development of China's open-ended funds, this thesis attempts to put forward some constructive and operable suggestions with a view to promoting the smooth marketing of the open-ended funds.Chapter One is a brief survey of features in the market promotion of open-ended funds, concerning diverse marketing channels, the choice and control of these channels, and the determining factors in the choice of certain channels. In the second chapter, attention is paid to the different phases in the development of American mutual funds and their corresponding marketing channels: direct marketing---the appearance of retail sales---rapid development of retail sales---with the growth of the scientific and technological elements, the increase of intensity and extensiveness in marketing channels, the formation of a systematic network of marketing channels. Statistical analysis is done as regards professional brokers, discount brokers, blanket insurance agencies and the new tendencies and features in the current development of American mutual funds. The American experience can be of great importance to China's open-ended fund in its beginning period. At present, restricted by such factors as market environment, technical facilities, investment concept, China's open-ended funds are mainly entrusted to commercial banks, securities companies, and insurance personnel. Generally speaking, insurance companies as sale agencies of open-ended funds are not mature enough technically, and commercial banks and securities companies each have their advantages and disadvantages. Chapter Three devotes a part to a detailed comparative study of these various institutions. Researches are also done as to the extension and control of different marketing channels. As the famous Chinese saying goes, the stones of those hills can be used to polish gems, or one can remedy one's own defects by means of others' good qualities, so the development of China's open-ended funds can benefit greatly from the study of the American case of mutual fund. The conclusion of this thesis is thus that to promote the multiplicity of marketing channels is an inevitable direction, with introduction of elements such as insurance agency and fund sales agent. Concomitant difficulties and problems and their solution are also considered at the end of the thesis.