Based on its special attributes, the stock selection criteria of pension funds must be based on the company's excellent fundamentals and good development prospects. It often chooses the company with the highest margin of safety. In view of its strong investment and research background and strength, as well as the investment and research institutions' grasp and foresight of the market, industry, macro-economy and policies, it is beyond the reach of ordinary individual investors, so choosing to follow its investment is a relatively safe and conservative method. However, it should be noted that due to the lag of follow-up, and investors do not understand the investment logic, but just close their eyes to follow, they will inevitably bear many uncontrollable risks.

pension fund is a fund set up by enterprises to pay fixed living expenses to retired employees. Pension funds are generally managed by special personnel or specialized organizations and do not belong to the assets of the enterprises that set up the funds. Larger pension organizations participate in a large number of trading activities in stock exchanges or capital markets. Insurance companies that handle private pension plans also buy and sell stocks. Many pension organizations have the right to make extensive investments and sometimes operate long-term mortgage loans. Some pension organizations even invest in unlisted companies. For example, the British Railway Retirement Fund has collected a large number of art treasures since World War II, including Egyptian antiquities, China porcelain from the Ming Dynasty and other dynasties, and paintings by Picasso and other painters.

The full name of the pension fund is the pension insurance fund. It is a very important part of China's social security system, also known as the pension insurance system. As far as the current situation of China's pension insurance system is concerned, it is a social system that provides basic living security for workers when they are old and weak and lose their ability to work. If they reach retirement age, they can enjoy pension benefits. The pension insurance fund is funded by the state, Enterprises and workers share the same burden, which is raised and managed by the social insurance center. Enterprises pay 2% of their total wages, and workers pay 8% of their total wages in the previous year. The so-called state burden is not specific, but only reflected in taxes, and the 28% paid is not taxed.