3. The main principles of social security fund investment and operation (IV. Selection): 1, safety principle 2, liquidity principle 3, profitability principle (the investment rate of social security fund should at least exceed the current inflation rate) 4, public welfare principle.
4. Advantages and disadvantages of social security fund investment operation system (short answer): There are two operation modes of social security fund: one is centralized monopoly operation mode, that is, the government system or public institutions authorized by the government centrally operate social security fund, such as the United States and Singapore. The social security fund under this model is highly centralized and monopolized. Its advantage is that the government can effectively control investment risks and be open and transparent. Its disadvantage is that it may lead to a new bureaucratic system and affect efficiency. Second, the decentralized competitive operation mode, that is, the government usually determines a number of qualified private institutions to operate social security funds according to legal qualifications, allowing inter-institutional competition, such as the pension operation in Chile and other countries and the commercial operation of compulsory provident fund in China Special Administrative Region. The advantage is that efficiency is paramount, but the disadvantage is that neither the government nor the insured can control risks, because the private sector's pursuit of profits and the concealment of operation have laid hidden dangers.