Discussion on the performance of equity funds portfolio after bringing in bonds fund and equity-linked structured notes(based on regional funds as model)

• Main Authors: Yi-Chun Guo, 郭怡君
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/17763066430129061708

碩士 === 逢甲大學 === 經營管理碩士在職專班 === 93 === Mutual fund is currently one of the most popular investment tools in the domestic financial market; the size of the fund had reached over NTD2,525,400,000,000, most of them are bond fund or stock fund. Following the advancement of financial engineering, financial institutions introduced the structural product—the Structured Note, which combined advantages of stock and bond, principle guaranteed, and higher return. This following research focus on portfolio consists of the above three investment tools, exploring portfolio performance and return after introducing bond fund and structured note into the stock fund portfolio. Research subjects were bank designated investment trust overseas fund and the entrusted fund raising for overseas structured note; stock fund and bond fund were selected base on fund sizes and investment areas. The investment areas had been divided into three major markets: America, Europe, and Asia. The structured note mainly based on the Principle Guaranteed Equity Linked Note. The investment portfolio all based on US dollar; the optimal investment portfolio on the efficient frontier was solved by using the Mean-Variance investment portfolio theory of Markowitz. The stock fund could indeed lower the risk and increases the portfolio return. Nevertheless, the incorporation of equity linked note into the stock and bond fund combination had proved to be the optimal investment portfolio in this research. It is suggested that investors can add the equity linked note into their portfolio of stock and bond fund for better investment arrangement; it is not recommended for investments on just stock fund or equity linked note because they are not mutually replaceable and the equity linked note has the feature of principle guarantee at maturity and is helpful in reducing risks involved in the portfolio.