The Reseach On The Asset Allocation Of China’s Securities Investment Fund And Its Performance

Asset allocation of Securities Investment Fund is very important aspect in theinvestment decision. At the same time, Asset allocation has a very significant impactin the performance of capital investment. At present, the open-end fund in China is inthe stage of rapid growth, rapid growths of assets, investors demand rapid expansion.Then make the prevention of risk through asset allocation and improving the stockfund performance very important. However, currently on the market for securitiesinvestment fund management in China that is in stock or the timing is still underdispute. Therefore, this paper will help the fund managers to understand theimportance of asset allocation for fund performance, understanding and application ofasset allocation as the methods to prevent the risks and to improve the performancelevel and provides an important theoretical value and practical significance..In this paper introduce and compare different strategy of Asset allocation inSecurities Investment Fund, then analyses the characteristics and existing problems ofasset allocation of security investment fund in China and also analyses thedevelopment of securities market in the financial crisis. After comparing with theprevious examples, it identifies the result of different incomes under differentmarket’s condition. Then the paper analysis and prove the role of Asset allocation inSecurities Investment Fund of China from the data of recent five years. Then it canhave following conclusions. Asset allocation policy in time series has contributed72.8%on the real rate of return of China’s open-end fund. However, China’sopen-end fund pays more attention to asset allocation, but still has less contributioncomparing with foreign fund. This shows that asset allocation strategy is moreimportant than active management. In addition, from the nearly five years’ datathrough the section analysis, we can find that the R2were significantly lower than themutual funds and pension funds of the United States of America. It means thecontribution of strategic asset allocation in the performance of cross section ofdifferent funds is extremely small, even negligible. On the other hand, comparing thesecurities market of China with the foreign clearly shows that China’s stock marketsystemic risk is relatively larger. Thus, China Fund Companies should not onlystrengthen the research of asset allocation, but also strengthen the analysis for theprediction of stock market movements.