why Americans favor common fund

　　Line organization of American fund company-the USA Investment Company Institute has a survey in the whole America recently, the result shows that about 77% informants think that common fund is popular, this percentage is higher than 70% for 10 years continuously, and this is the highest percentage after “911” Event happened in 2001. It proves that Americans are quite more favorable to common funds such as money market fund, stock market fund, bonds market fund and so on.

　　By the end of November, 2006, the asset managed by common fund of USA is as high as 10.281 trillion US dollars, which possess 53% of global funds market, equals to 84% of the America GDP in 2005.

　　Why common fund is so popular with Americans, the reasons are that its benefit rate is higher than bank deposit and its safety factor is higher than stock investment and pension system. Some materials indicate that, in the ten years from 1997 to 2006, about 80% informants in average express that the excellent performance of common fund is the most important element why they choose it.

　　Surveys indicate that satisfaction level of the fund company investor is decided by the following factors: performance of the fund, how people are familiar with the fund company, opinions of professional financial adviser, present condition of financial market, opinions of families and friends, undulatory property of stock market and media advertisement of fund company. Among them, the proportion of performance of the fund is as high as 44%.

　　It’s easy to see that most investors treat performance of the fund as the most important factor of the reason why they choose it. To avoid high risk of stock investment is another important reason why Americans choose common fund. Though benefit rate of stock is higher than fund, but in capital market, risk is highly related to benefit, and many people are not confident to self-chosen stock and bond. A survey shows that 42% informants of fund owner express that, because the tock risk is too high, so they choose common fund which is safer. If they buy fund, they can require professional group to finish value maintenance and increment, and they realize investment diversification by concentration funds, and distribute investment risk.

　　Practice improved that performance of common fund comes up to all our expectations. In 2006, average benefit of USA stock fund is as high as 15%, which is the best achievement in recent three years, and among the investment, fund return in Asian new market such as China, India etc is as high as 36.9%.