Case Analysis On The Innovation Of Fund Management Companys' Guaranteed Products

China public fund industry was born in 1998, it developed rapidly in the past 18 years. There are already 101 domestic fund management companies in China at end of January 2016, managing more than 725 million yuan fund assets totally.This paper focus on the innovation cases of China fund management companies based on guaranteed products. This study is significant in the current market environment. The decline of market interest rates leads return on the low-risk assets decrease. At the same time, China stock market has experienced dramatic fluctuations last year. Thus asset allocation face a big problem at present. Guaranteed products are not only safe but also offensive in some extent. Therefore, it meets the demand of current investors.This paper mainly analyzes a case. In this case, a fund management company successfully designed and practice a new guaranteed product. The author will analyze what innovations the company has done in this product and what effects of these innovations.The biggest innovation in this product is that its investment strategy doesn't use CPPI which most guaranteed products use. This guaranteed products mainly invests on grading fund. It can be concluded that this investment strategy has greater stability than CPPI strategy. This product has also make some liquidity design innovations. Its guaranteed term is only 18 months that is much shorter than general guaranteed fund. This product will also arrange cash dividends every quarter for investors. In addition, this fund management company has some new idea on the fund raising of this product and succeeded.Although some achievements has been made in this case, the author will also point out its some shortcomings such as simplification on the product structure which can not meet the complex asserts allocation demands of investors. The author gives some suggestions to the improvement of this guaranteed product. At last, the enlightenment will be summarized that this guaranteed product innovation case give other fund management companies.