Product Development And The Ways Of Innovation Of Mutual Fund

This essay firstly analyzes the elements of mutual fund development,which includes types, investment strategies, fee structures and etc. Then itintroduces the development of overseas mutual fund industry and treats itas a comparison to review the development and current situation ofmutual fund industry in China. Also, in this essay, the connection amongmutual funds, index, distribution channel and market supervision iselaborated and the difference between unit investment trust and collectiveinvestment scheme issued by securities company is indicated. Based onthe analysis mentioned above, it points out the necessity, the principleand the trend of innovation in mutual funds’ product development. At last,this essay specifies the real utilization of innovation in China’s mutualfund market, concludes that mutual fund’s innovation should be enforcedfrom the perspective of target investment instruments, marketing and etcand also illustrates that one of the most important factors of mutual funddevelopment is to combine with the prevailing relevant regulationsregarding derivatives investment of mutual fund.