The Research Of Mutual Fund Product Innovation In China

It is about fifteen years since the first close-ended fund had listed in securities exchange in china,The domestic fund company had experienced extensive and savage growth by going through the surge bull market from2006to2007,and stopped growing up in assets,the going up cost came from sales channels.the lowest trust by investors.and faced the challenge by asset management departments of securities companies, asset management departments of insurance companies,trust companies.PE companies, so the transformation and products innovation are very important.Now this paper will discuss the product innovative road of fund company in china:The first we will compare the current situation and various environment of domestic fund industry with overseas.Equity funds get the largest proportion than the fixed-income funds.The fund industry will be influenced when stock market fluctuate, that means "live at the mercy of the elements".The instrument products growed fast but the kinds are not enough,the largest company of overseas market Vanguard represent index investment.And function products came out with bad performance.yet these products growed fast with mature and perfect system.The QDII and alternative funds growed slowly at the beginning.but they will have hope.The second part states the trends of product innovation of domestic and overseas companies,it is Index of investment,ETF,classify structure products,fixed income,function and alternative.Alternative investment is considered as a major strategy by institution investors from1970era to the present and the most large asset management company had entered into this sector.The specially asset management plan focused on alternative investment.The fund companies wanted to become wealth management institutions.The last part is about some problems with innovative process, stress in system,environment,supervise,risk controlment and term of protection.