Investment Tactic Research On Social Security Fund Under Optimal Portfolio

It has been11years since social security fund was found in2000.In the end of2011the amount has been accumulated to868.9billion RMB from earliest20billion RMB. Among the fund492billion RMB is from fiscal transfer and the investment return is284.7billion. According to Wang Zhongmin, Vice Director of National Social Security Fund, there is a need more than2000Billion RMB for social security fund scale. Now it is only868.9billion RMB.We can look at it from investment structure and investment profit. Until the end of2011there is50.66%of total assets on fixed return investment,32.39%on stock,16.31%on industrial area and0.64%on cash and other equivalent。It proves that the fund is managed very well and gets a high profit. In2007the annual investment profit rate reached highest:43.19%, the opposition happened in2008with-6.79%. The average annual profit rate is8.41%, which is higher with6percent compared with average inflation rate at the same time. We can draw a conclusion that management vehicle operate the fund very well. Of course we also know that in2008the profit rate reached lowest:-6.79%and inflation rate reach highest:5.9%. So we must pay attention to the stability of fund when financial disaster happened. How can we avoid loss on investment, especially vast loss? Here I will launch some of ideas about optimal portfolio to secure the fund.Firstly I will describe background and meaning for topic, document depiction and research method, In the second part Ⅰ will define social security fund, risk, equity investment, PE investment and investment portfolio. From third part we will focus on present status of social security fund and look back into past investment record to know the whole picture of its returns; also analyze the reason for its returns. In the fourth part we introduce some investment model of foreign countries, analyze why they can succeed or fail. After sum-up of domestic and foreign investment practice we suggest add equity investment percentage and widen PE investment scope, try some ETF investment, also we must pay attention to china capital market and make it clear and fair. We must prevent ETIs risk in practice. The sixth part is summary and we must set up a long-term investment scheme to perfect。Here I will begin with problem of fund investment and summarize achievement and shortage for the investment recently. Then I will propose more investment on stock and quickly add investment on Equity fund to change investment portfolio. Through above approaches we can get more profits from investment. Also we must pay attention to risk on investment. I will emphasize some risk. In the end I will introduce some success model and lessons from foreign countries social security fund investment, especially ETIs.