Research On The Investment Of Individual Account Fund In China

China's current basic pension insurance system was officially formed in 1997, and created a unique "combined with system account" mode. Social pooling accounts implemented the pay as you go system for paying current pensions and mutual aid, while the other part of the personal account, carried out accumulated fund which paid by employee, and for workers after retirement. The original intention of the system is to protect the enterprise workers to live in retirement. But in the system development process, due to the social pool and full payment is not sufficient, resulting in a large number of individual account funds are used to pay part of the social co-ordination, and the status quo of personal accounts empty account, individual empty account of pensions brought great pressure for fund payment in the future.With the rapid development of China's social economy and the progress of scientific and technological level, the people's living standard has been improved steadily. Development of science and technology has brought in improvement of medical standards. China's per capita life expectancy continues to increase, at the same time, the birth rate has dropped from 18.21% to the current 12.37% in 1980s, the low birth rate and the life expectancy of the Chinese people to continue to extend, which has led to the gradual deepening of the aging population in our country. Pension issues are gradually highlighted, how to protect the basic pension in full payment has become an important issue that the government need to face in current and future. In spite of the old-age insurance system in China is facing big payment pressure in future, but the current our country urban basic old-age insurance is the existence of a large number of surplus, which more than 90% should be attributable to the balance of the fund of individual account.The current fund management provisions of the basic pension funds and can only deposit banks to buy government bonds, if adjusted for inflation, capital preservation yet become a problem, let alone fund value. Because of the huge pension fund, the loss is very serious, which will undoubtedly further increase the basic old-age insurance in our country to pay the pressure. In view of this, the State Council in 2015 introduced the "basic old-age insurance fund investment management approach " (No.48), allows the basic endowment insurance fund balance of the investment market, hope to alleviate pressure on the payment of old-age insurance system in China by increasing the value of the fund, but until today, there is no corresponding detailed rules for the implementation of the introduction. In view of this paper, I hope through carding of domestic and foreign pension fund investment experience and comparison, suggestions for China's personal account fund investment advice.At first, this paper selects three representative countries, analyzes and summarizes the development of history, current situation and investment status of the pension individual account fund. As the most typical representative of the privatization of pension funds reform, Chile was very successful in the operation of the pension market. The Australian superannuation funds since its establishment, has made great achievements, and protects the domestic life of the retired personnel effectively. Singapore Central Provident Fund System not only promotes the country's economic development, but also reduces administrative costs owing to its centralized management approach. Due to the continuous innovation of investment and improve the pension fund personal account rates, the model effectively protects the stability of retirees living,Then, this paper analyzes the historical evolution, development status and investment situation of the social security fund investment fund in China, and makes a brief evaluation. Successful investment experience of the National Social Security Fund Council, can provide a lot of reference to the personal account of basic pension insurance in China investment fund. Thirdly, through analyzing the problem of the constant depreciation of pension funds caused by irrational investment and the debate of individual empty account operation model, this paper find the enlightenment about China's basic old-age insurance individual account fund investment by discussing the foreign pension funds in individual accounts and the national social security fund investment.According to Markowitz investment model, selecting the relevant data, constructing five group investment models, you can identify the presence of the risk of depreciation. After a comprehensive analysis, you can understand, the maximization of stock investment (30%) can obtain highest profit, while its exposure to risk is greatest. And so on, with the gradual decline in the proportion of equity investments, the yield gradually to a minimum, but the risk is also reduced. Diversified investment model is significant to reduce the risk of devaluation of the Fund. While in most years five portfolios can resist the downward pressures on inflation, but in part of the year, rate of return is lower than the inflation rate, taking into account the principal base of the basic pension fund, if it occurs kinds of conditions, the Fund will bring great risk of depreciation.It can be seen that the individual account fund market investment has been inevitable, not to make market investment can not achieve the value of the fund's value. At the same time, the selection of high return risk investment tools are also essential, fixed income tools can not overcome the inflation rate of our country. But high income is also accompanied by high risk, in order to avoid risks, personal account fund investment needs to be designed to improve the investment strategy, select the appropriate investment tools and investment managers, and to strengthen investment regulation.