Analysis on Uncertainty of Old Pension Investment and the Combination of Investment

While the funds of the individual account will accumulate increasingly in China, the restriction of investment tools and lower return rate of funds is difficult to keep pension funds increment, and to provide the proper level of the pension rate of substitution. This paper studies the portfolio strategy of Chinese pension funds. Firstly, it analyzes a simple risk-optimal model of the investment. Secondly, it studies the portfolio of pension funds with the risk-optimal model of the investment, and analyzes the proper level of the stock investment. Lastly, it makes some policy suggestions for the investment strategy of Chinese pension funds.