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Principle of diversification of fund allocation
Please discuss the investment principles of social security fund in combination with theoretical knowledge and actual situation.

Correct answer:

(1) safety principle. The fundamental social policy goal of social security fund is to maintain social stability, which is the strong financial backing of social stability, so the safety principle is the primary principle of social security fund investment. If we don't pay attention to the safety of funds and invest heavily in high-risk projects, once the investment fails, we will not get the expected investment income, but will endanger the basic life of the security group and even cause social fluctuations.

(2) Liquidity principle. The principle of liquidity requires that there should be enough social security funds to invest in projects with strong liquidity to ensure investment.

Pay all kinds of insurance liabilities in time during capital operation. Generally speaking, with the expansion of social security (mainly social insurance) coverage, the increase of fund scale, the improvement of capital market and the innovation of investment tools, the purpose of liquidity can be achieved through diversified investment portfolios. Large liquidity of assets means strong liquidity, which means that liquidity principle is also the guarantee of safety principle.

(3) the principle of profitability. The purpose of social security fund investment is to maximize investment income on the premise of ensuring safety.

This is the principle of profit. When the social security fund forms a long-term and huge fund deposit (such as the endowment insurance fund), realizing the income target of the fund investment is conducive to resisting the erosion of the deposit fund by inflation and realizing the preservation and appreciation of the fund, thus truly reducing the burden on the country, units and individuals.