Comparison of Collective Investment in China and in the USA

Meng Xu

Bachelor's thesis

Abstract:

This thesis focuses on comparison of collective investment in America and China. We all know there is no doubt that nearly a hundred years of development history of US mutual fund is the world's largest and most mature markets. According to the ICI’s data, until the third quarter of 2009, global mutual fund assets had reached $ 22.38 trillion, the United States accounted for 55 percent, and China, as one of the most developing countries in the world, although has only developed 10 years since its first open-end fund, but its development speed has surpassed the United States in recent years, so that’s why China and USA have comparability. The second chapter is divided into five parts. In the first part, it will introduce what is collective investment, the history of collective investment, the type of collective investment, and its characteristics and distinctions, fund raising and risk. In the second part and third part, and it will describe the collective investment market industry in China and in USA, and describe its history and origin. The fourth part is the most important part, and it’s the core of this thesis, because collective investment is a very big range, in order to make it specifically, this thesis choose mutual fund which is a major part of collective investment as a representative. In this part, it compares the mutual fund between China and USA through the fund fees, marketing channel, total size of the fund market, the proportion of mutual fund assets, the composition of fund holder, the proportion of index fund assets in the whole stock assets, investors’ age and investors’ objectives. The last part is conclusion. It summarizes preceding part of the thesis and put forward some suggestions to promote the development of China's fund industry.

Abstract:

This thesis focuses on comparison of collective investment in America and China. We all know there is no doubt that nearly a hundred years of development history of US mutual fund is the world's largest and most mature markets. According to the ICI’s data, until the third quarter of 2009, global mutual fund assets had reached $ 22.38 trillion, the United States accounted for 55 percent, and China, as one of the most developing countries in the world, although has only developed 10 years since its first open-end fund, but its development speed has surpassed the United States in recent years, so that’s why China and USA have comparability. The second chapter is divided into five parts. In the first part, it will introduce what is collective investment, the history of collective investment, the type of collective investment, and its characteristics and distinctions, fund raising and risk. In the second part and third part, and it will describe the collective investment market industry in China and in USA, and describe its history and origin. The fourth part is the most important part, and it’s the core of this thesis, because collective investment is a very big range, in order to make it specifically, this thesis choose mutual fund which is a major part of collective investment as a representative. In this part, it compares the mutual fund between China and USA through the fund fees, marketing channel, total size of the fund market, the proportion of mutual fund assets, the composition of fund holder, the proportion of index fund assets in the whole stock assets, investors’ age and investors’ objectives. The last part is conclusion. It summarizes preceding part of the thesis and put forward some suggestions to promote the development of China's fund industry.

Keywords

Investment fund, comparison, open-end fund, close-end fund, fund fee, purchasing channels.

Keywords

Investment fund, comparison, open-end fund, close-end fund, fund fee, purchasing channels.

Language used: English

Date on which the thesis was submitted / produced: 5. 5. 2017

Thesis defence

• Date of defence: 7. 6. 2017
• Supervisor: Kateřina Kořená
• Reader: Martina Novotná

VŠB - Technical University of Ostrava

Ekonomická fakulta

Bachelor programme / field:
Hospodářská politika a správa / Finance