China's mutual fund assets hit RMB 3.27 trln in 2007

China's mutual fund net assets under management amounted to RMB 3.27 trillion by the end of 2007, according to a report by China Galaxy Securities Co Ltd yesterday.

The figure is almost three times of 2006's RMB 856.4 billion. The industry also had more than 100 million accounts under 363 mutual fund products by the end of last year, which accounts for 25% of the total number of Chinese household.

However, fund managers are required to improve their management abilities and promote the education of investors to prepare for possible big expansion in the new year.

Specialists suggest funds companies should educate investor with various fund products instead of merely encouraging them to invest, so as to reduce the possible risks in the market.

The outlook for mutual funds this year is still bright as Chinese investors' enthusiasm in fund investment keeps surging, driven by China's bull stock market and low bank interest rate.