Fund investment: a good horse still needs to be reined

Securities investment fund is a collective securities investment method that shares benefits and risks. This type of portfolio investment, which integrates less and more, can diversify investment, seek profits and avoid risks, and take into account the liquidity and safety of funds. At the same time, the securities investment fund industry is a very special industry, and the products it produces cannot be seen or touched. Investors' trust in fund management companies and their recognition of fund products are the key factors affecting their financial choices. Therefore, system construction and risk control are the top priorities of fund management companies.

Securities investment fund is a financial product, and investment management is the core business of fund companies. Investment management and risk management are like two sides of a coin, both are indispensable. The measure of return must take into account the degree of risk taken. For investors, on the one hand, what needs to be considered is whether the chosen fund company is professional enough and whether it has the ability to obtain returns; the other issue is even more important-whether the fund company can put the interests of investors in the first place , From this perspective, the regulatory system and risk control system are particularly important.

As a public financial management method, the supervision of the fund industry is stricter and more transparent. In fact, China's fund industry has been developing on a relatively healthy and benign track from the very beginning. Different from the situation of "crossing the river by feeling the stones" in many industries in China, China's fund industry is based on laws and regulations, followed by institutional access. The rapid and healthy development of China's fund industry in the past 8 years is largely due to the legislation and supervision of the industry. Especially since June 2004, after the "Securities Investment Fund Law" was formally implemented, various supporting regulations have been promulgated one after another, and the supervision system of the fund industry has been increasingly improved. On the one hand, these regulatory measures effectively protect the interests of investors. From another point of view, it has created a good external environment for the healthy development of the fund industry. Even from a global perspective, countries with developed fund industries have relatively complete regulatory systems composed of laws and regulations, so as to maintain the normal and healthy development of this special industry of funds.

On the other hand, the risk control of fund management companies is also very important. When fund managers use investors' assets to "gallop" in the market, the risk control mechanism is like the reins that cannot be taken away at all times, and it is precisely the solid foundation for protecting the safety of fund assets. A sound risk control system can plug the loopholes of individual behavior deviation, resist various hidden risks, protect the interests of investors, and it is also the foundation for the sustainable development of fund management companies.

Different from the general vertical risk management system, some fund companies now adopt a unique horizontal risk management system to establish "three lines of defense" including risk management, risk supervision, and independent audit before, during and after the event. Among them, the first line of defense is held by the board of directors, management and business departments, and has primary responsibility for risk management in daily work: the second line of defense is the risk management committee and risk management managers are responsible for providing policies, minimum standards and relevant Guidance; the third line of defense is the Inspector-General and the Supervision and Audit Department to conduct in-process monitoring and post-event independent audits. The purpose of these lines of defense is to ensure a complete and reasonable division of risk management functions, avoid omissions and maintain the independence of each line of defense.

In investment risk management, the fund company will establish a complete risk control system including a risk control decision-making system, a risk control monitoring system, a risk control execution system, a risk control guarantee system and a self-discipline system. , stock concentration, stock pool management and trading system and other aspects to take risk control measures to systematically analyze and avoid risk sources. From research to investment decisions to trading operations, there are clear systems and processes to follow. Any company executive or fund manager must first obey the system, so that "the system manages the investment" rather than "the people manage the investment".

In the fund industry, there is another type of risk that needs to be taken seriously, which is what we usually call "moral hazard".

The most fundamental role of a fund company is to be a professional financial advisor to the general public. For fund companies, investors who buy fund shares entrust us not only with money and currency, but also a heavy responsibility. Different from other consumer goods industries, fund companies bring investors not only immediate profits, but also sustenance for the protection and care of themselves and their relatives, and hope for seizing future development opportunities.