System Construction Of China's Investment Fund Research

The system of investment fund, appeared in the 19th century, has been highly developed in the 20th century. As a media of chansfer from deposit to investment with high efficiency, investment fund was able to combine the liquidity, safety and profitability well and warmly welcomed by the investors in the western countries. The influence of fund to the financial market has even exceeded that of the bank.Different from the direct investment of investors, the investment of fund is derived, and there is a longer train of commission and agent. Therefore, the moral risk result from the information asymmetry is more obvious. There are two kinds of risks in fund investment. The first one is the risk contained in the financial instrument such as stock, bond, the other is the risk of fund. Academicly speaking, the fund can successfully decrease the risks and realize more steady profit. All the advantages depend on the capacity and the professional spirit of fund managers as well as how the fund managers deal with the estate. So, getting rid of the moral risk of managers and unifying the managers and the fund holders and magnifying the profit of the investors have become the key problem. Proper and efficient arrangement can efficiently prompting the agents and limit their behavior reasonably and acquire the corriponding repay with lest cost.Considering the successful performance of invstment fund in western countries, Chinese has decided to introduce it into the capital market. However, the behavior of the funds in Chinese capital market was not as the same as what was expected, even came out the "fund black curtain". Obviously, to make the system of investment fund run well in China is not easy. On the contrary, it needs us to do more research on the theory of its system and establish the more perfect regularity at the beginning.In this paper, the discussion was started with the concept of investment fund and the fundamantal theory was carefully analyzed. Companied with fresh data, the present appearance of Chinese investment fund and their problem appeared in the quickly changing market was also dicussed in the paper.In chapter 1, the concept of investment fund was difined in two kind of background, the one is economy, the other is law. After that, two kind of fund-trust style and company style-were analysed with the method of trust standard, and the opinion that though investment fund belongs to a special trust business, still to exploit the explaining in the method of trust standard is good to realizing the essence of it was pointed out.hi chapter 2, the system of investment fund was emphasised. First, the system was difined, pointing out that the system of investment fund is a system to limit the investors, managers and the trustees. The system was brought forth because of the exitence of investment trading and to low down the cost of trading. Besides, the origin and changing of investment fund was recalled historically and analyzed theorically.In chapter 3, several main factors which consist the whole investment fund system were discussed. First, the company style and the trust style fund were compared and analyzed. Then, the opened and covered fund were compared. The advantage and disadvantage of each kind were also put forward.In chapter 4, which is the most important part of this paper, the running of investment fund in China was focused. What were mentioned include the origin, developmet and the main problem the fund system faced to. As the capital market of China is still in its childhood, and the investment fund is also newly born, new problems come out one after another. In this paper, the most present data was utilized to research the performance of Chinese investment fond and the new problems, and the method that can deal with the problems was tried to put forward.