Pension is the biggest capital source

　　The quick and flourishing development of common funds of American intertwined with its old age pension system. With the era of aging generation of baby boomers coming by, the market of old age pension being larger and larger is in need of stable and ever value-increasing investing ways, so common funds becomes the best choice. At present, over 65% of common funds come from old age pension which is the biggest source. Thus, the plan of paying old age pension regularly has been the main way for investors to buy funds and over 60% funds owners buy common funds through these plans. 49% of these funds owners were born during baby boom period from 1946 to 1964.

　　According to the survey, 92% of the American funds investors choose the financial objective of buying funds with old age pension, and the portion of old age pension in mutual funds was 20% in the early 1990s, which was ever-increasing and became the biggest investor as a system. The accumulation and growth of old age pension provide unfailing and long-term capital source for the fund market.

　　As for the funds investing theory, Americans advocate the theory of Warren Buffett who is called Stock God “to buy the shares which were underestimated by the market and own them for a long time to gain profit”. It is said by the materials that the period of Americans to own the mutual funds is about 3 to 4 years since the bull market in the 1980s, which reflects that Americans regard fund as a long- term tool to manage their money rather than a short-term tool to buy and sell frequently according to fluctuations in the market.

　　Besides, mutual funds have influenced the work of the American companies greatly. Fidelity Investment Group as the biggest fund company in the USA manages 1.25 trillion dollars and most part of the money was used to buy shares of many companies. Therefore, Fidelity Fund became shareholder of these listed companies and involved in decisions among the board directors. As Warren Buffett said, “When we are investing we regard ourselves as enterprise analysts instead of market or economy analysts.”