The Development And Valuation Analysis Of Grading Fund In China

The leveraged funds first appeared in the overseas market. Until2007, this product was for the first time seen in the domestic fund market, which filled the blank of the domestic market in this area. Grading fund products entered a period of rapid development in recent years; major domestic fund management companies as well as a number of asset management companies constantly upgrade and design grade funds structured products, and continually create fund products with their own characteristics. As for such vigorous development trend, grade funds will become the main form of domestic funds in the future. However, due to the late start of the classification of the domestic market fund products, the truly revolutionary product has not yet appeared. Most classification funds products or existing products still came from abroad, which makes the analysis of the similar classification of foreign fund financial assets is necessary. Meanwhile, the question of how to price the grade funds is also troubling investors; though for different grading fund the classification mode is not the same, there is common at the basic theories and methods of their pricing.In this article, we will first summarize the role as well as the characteristics of the leveraged funds based on the knowledge of development of both domestic and international classification funds. Moreover, we will use the classic Black-Scholes model and Monte Carlo simulation to achieve the valuation analysis of domestic grade funds.