How is the social security fund invested when it is used?

Individual investors cannot buy social security funds. Because the social security fund is not open to individual investors. Social security fund is a part of the endowment insurance premium paid by the state to the employees of enterprises and institutions managed by professional institutions, which is used to preserve and increase the value. Every year, it is a considerable expense for the state to give employees pensions. After residents pay social security, this part of the funds can only be deposited in the bank. With the rise of prices, the currency depreciates more and more. If the social security fund cannot maintain and increase its value, it will increase the huge burden on the country, so the establishment of social security fund is also to prevent the fund from depreciating.

The Social Security Fund Council has signed entrustment agreements with fund companies such as Nanfang, Bosera, Huaxia, Penghua and Jiashi, which means that social security funds can enter the securities market. As of March, 20021year, according to incomplete statistics, social security funds have appeared in the top ten shareholders of 16 stocks. The investment mode of social insurance fund is decided by the social security fund management institution, and investors can deposit the insurance fund in the bank to earn interest income. The state usually issues bonds, and investors can earn interest by buying government bonds through banks.

The interest of general national debt is higher than that of bank deposits. Investors can also buy stocks and get investment income, but stocks are more risky. Invest funds in overseas securities markets to earn income. The social security fund is called the national social security reserve fund. The purpose of social security fund is to supplement social security expenditure such as population aging and endowment insurance in the future. It should be noted here that as a supplement to social security expenditure, it is the social security reserve fund. Reservation is its main feature.

One of the most famous social security funds is its very stable return on investment. Since the establishment of social security fund in 2000, the average annualized rate of return is around 8%, which actually exceeds most of the five insurances and one gold. Because the "five insurances and one gold" itself is managed by the local government when investing, in actual investment, many of the "five insurances and one gold" are placed in bank savings without investing in stocks or bonds. In the 1990 s, the savings income of banks was still good. In the 1990s, the total income of bank savings could even reach 5%~ 10%. However, after that, the bank's savings income gradually declined, and now the bank's savings income is very small.