After more than 30 trading days the fund index rose from 5,000 points to 6,000 points in the market, yet lowered to the bottom in merely 20 trading days. This has raised a question among investors: in this situation, should we invest in funds?

Lu Yifan, fund manager of Nanfang Longyuan, said that the market adjustment is making an adjustment in response to the accumulation of previous bullish high values. Given the situation, long-term investment in A-shares remains optimistic and investors are advised to hold or buy equity funds.

Financing experts suggest that those who invest in funds should stick to a long-term investment strategy. Research, cost and trading costs for funds are not high, thus making management fees and entrustment expenses also relatively cheap. This savings are passed along to investors. In the current unstable market, equity funds are seen as a better risk.

For more details, please read the full story in Chinese. (http://finance.sina.com.cn/money/fund/20071119/06384187909.shtml)

(China.org.cn November 21, 2007)