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The necessity of entrusted investment in basic pension insurance

1. It is conducive to increasing the income level of pension insurance funds and easing the payment pressure of pension insurance. According to data released by the Ministry of Human Resources and Social Security, the investment return rate in 2019 and 2020 was 9.03% and 10.95% respectively, which is much higher than the bank deposit interest rate and inflation rate. Entrusted investment can effectively increase the income source of pension insurance funds, increase the fund's self-financing ratio, and reduce reliance on financial subsidies.

2. It is conducive to optimizing the asset allocation of pension insurance funds and improving asset quality and safety. Entrusted investments are managed and operated by professional institutions, and mainly include domestic stocks, bonds, pension products, listed securities investment funds, as well as stock index futures, treasury bond futures, etc. These investment varieties have high liquidity and risk diversification, can effectively resist market fluctuations and inflation risks, and ensure the safety of pension fund assets.

3. It is conducive to promoting the development of the capital market and supporting the real economy and technological innovation. Entrusted investment can inject long-term and stable funds into the capital market, increase market vitality and depth, and improve market efficiency and fairness. At the same time, entrusted investment can also support the development of national strategies and key areas by selecting high-quality enterprises and projects for investment, and promote economic transformation and upgrading and technological innovation.