Securities Investment Fund Investment Behavior Research, Impact On The Stock Market Stability

China Securities Regulatory Commission published "Security Investment FundManagement Temporary methods", which brings forth clearly, Promoting the healthyand stable development of stock market is the main purpose of developing securityinvestment fund. Our government places great hopes on fund's positive function onstabilizing stock market when gives energetic support to security investment fund. Inthe course of fund's development, what function did security investment fund do onstabilizing security market is the point at issue.Under the direction of statistics, quantity economics and finance, led by theinfluence of investment funds on stock market, firstly analyses two-sided function onsecurity market by security investment fund in theory aspect. Secondly, analyses thebehavior of the investment fund and conclude that there is high stock and industry,serious herding behavior. The empirical analysis also validates that securityinvestment funds don't fulfill the function of stabilizing the stock market. So, in orderto improve the role of investment funds in stabilizing stock market, this paper putsforward the following countermeasures: build up the correct supervision concept;create new finance products and build up mechanism to avoid the risk;improvequality of listed companies;develop the internal government structure and strengthenexternal supervision on investment funds.