金融专业英语Lesson4基金投资.doc

Lesson 4 Fund Investment The key to the operation of fund investment is to minimize risk while at the same time to maximize return. However, high return is usually accompanied by high risk while low risk is often followed by low return. Therefore, the correct handling of risk and return is required in the operation of fund investment. In modern investment theory and investment practice, the basic solution to this problem is investment portfolio.By investment portfolio, it is meant that for certain investment purpose, the capital is used in various fields, thus forming a combination of a variety of financial assets. The field where the capital is used called investment project. The investment projects involved in the fund investment portfolio include stock, bond, industry, real estate and futures. Since cash and deposit are the forms of the existence of capital, they can also be regarded as fields for the use of capital and be included in the broad sense of investment project.In the actual practice of fund investment portfolio, it is not quite possible to include all the above-mentioned investment projects, only two to four types on the average. For example, a certain fund has decided to have the following investment portfolio: industry, stock and bond.Investment portfolio is not only a combination of different investment projects but also a combination of different products within an investment project, such as stock portfolio, bond portfolio. Such portfolio is called project portfolio while the earlier portfolio is called system portfolio. In stock portfolio, there is the combination of industrial stock, commercial stock, real estate stock, public utility stock, or the combination of stocks of different regions and sectors. In bond portfolio, there is the combination of government bond, corporate bond, financial bond. Industrial portfolio may adopt a combination of different industries while real estate portfolio may consider the combination of different regions.Why can the funds investment portfolio reduce investment risk? The investment saying of ”Do not put all the eggs in one basket” gives a vivid answer to the question. Quantitative analysis is helpful, even necessary, to the actual operation of investment portfolio. Fund managers should attach great importance to the use of relative mathematical method and instrument. .The funds investment portfolio is determined by the funds investment goal whereas the funds investment goal is determined by the investment goal of the investors. Generally speaking, the investment goals of the investors fall into the following types: (1) income type: in search for regular and stable income: (2) growth type: in search for the rapid increase of the value of capital; (3) balanced type: balanced approach towards the above-mentioned goals.A fund, upon its formation, should decide the special demand of which category of investors it will cater to. The goal of the investors determines the investment goal of the fund. Therefore, in terms of investment goal, the funds fall into three categories: income type, growth type and balanced type.The investment goal of the find should be made clear upon its formation so that investors can make their choices. After the clarification of the investment goal of the fund, it is easier to determine the corresponding investment portfolio. Generally speaking, the investment portfolio of the income type fund may include bonds with high interest rate, stock with high percentage of dividend, industrial project in mature sector and real estate project in steadily-developing area. The investment portfolio of the growth type fund may include stocks of rapidly developing company, industrial project in high and new technology industry and real estate project in emerging region. Radical growth type fund may consider speculative stock and futures. The balanced type fund may make rational choice of the projects included in the above portfolios according to different emphasis. In the actual investment operation of the fund, apart from the above general principles, a variety of factors should be taken into consideration in determining investment portfolio, such as macro economic situation, the financial and economic policy and industrial policy of the government, the characteristics of different types of markets and other objective factors and the expertise of the investment experts in the fund management and other subjective factors.Mutual Fund is a company engaged in investment, representing the interests of individuals and institutions with identical financial goal. Since it has the advantages of low investment threshold, diversification of risk, professional management, economy in transaction cost, high investment return, high credibility, high liquidity, automatic reinvestment of dividend and capital return and a full rang of varieties of instruments, it has won public favor. However, mutual fund is not completely void of risk. Once the fund manager errs in operation, it is the investors who suffer the loss. Moreover, some of the funds currently aim at taking the risk to make profit and often violate the rule of fund operation. In addition, to the general investors, the fund is more suitable for medium and long-term investment, not for short-term operation so it is not entirely satisfactory.There are a great variety of mutual funds. In terms of its legal foundation, there are the company type and contract type; in terms of the possibility of fund recovery in the process of operation, there are the closed-end type and the open-end type; in terms of the goal of establishment, there are the growth find, income fund and balanced fund; in terms of the target of investment, there are money market fund, bond fund, stock fund and sector fund; in terms of the country and region of investment, there are the domestic fund and international fund.Exercises:I. Translations: 1投资组合 2投资项目 3项目组合 4定量分析 5收入型基金 6违背资金操作常规 7高新技术产业 8共同基金 9分散风险 1 0封闭型开放型基金IIC TO E：你的主要投资目标是增加财富。这就要求你先有积蓄，然后用积蓄去投资。虽说积蓄有助于实现短期的经济目标，但投资能帮助你实现长期目标。长期投资使你在投资过程中要承担比储蓄计划更多的风险以获取更高的回报率。III.E TO C： The Investment PortfolioVery few people are able to achieve all of their investment objectives with a single investment vehicle. As a consequence, most investors eventually assemble a collection or portfolio of various investments. Financial advisers typically recommend that the portfolio be diversified so that if a few of your investments turn sour, they will be balanced by others that do well. A well-diversified portfolio might include a mix of stocks, bonds, gold, money-market funds, real estate, and collectibles. Ideally, the investments in the portfolio should balance each other in terms of their sensitivity to various forms of risk. The portfolio might also be selected to provide a mix of various types of return. Basically, there are two ways to make money in investments: through a capital gain or through dividend and interest payments. Various investments