Research on the wealth management fees of defined contribution pensions during the pre-retirement stage
In this paper, by enhancing the penalty coefficient, the general square loss criterion was modified into a novel criterion to more precisely identify risks and returns. Then, under this criterion, the ideal asset allocation for pension fund participants was investigated considering wealth management...
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| Format: | Article |
| Language: | English |
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AIMS Press
2024-12-01
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| Series: | AIMS Mathematics |
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| Online Access: | https://www.aimspress.com/article/doi/10.3934/math.20241713 |
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| _version_ | 1832590728443723776 |
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| author | Zongqi Sun Peng Yang Ying Wang Jing Lu |
| author_facet | Zongqi Sun Peng Yang Ying Wang Jing Lu |
| author_sort | Zongqi Sun |
| collection | DOAJ |
| description | In this paper, by enhancing the penalty coefficient, the general square loss criterion was modified into a novel criterion to more precisely identify risks and returns. Then, under this criterion, the ideal asset allocation for pension fund participants was investigated considering wealth management fees before retirement. Then, the Hamilton-Jacobi-Bellman (HJB) equation was formulated through the dynamic programming approach, and both the optimal investment strategy and minimum loss function were determined using calculus methods. Finally, how important parameters affect the initial optimal investment strategy and minimum loss function was analyzed, their economic implications were explained, the rationality of the model was validated, and several recommendations for management were provided. |
| format | Article |
| id | doaj-art-21c790b759a44c51aef5ce550e0ad5e0 |
| institution | Kabale University |
| issn | 2473-6988 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | AIMS Press |
| record_format | Article |
| series | AIMS Mathematics |
| spelling | doaj-art-21c790b759a44c51aef5ce550e0ad5e02025-01-23T07:53:25ZengAIMS PressAIMS Mathematics2473-69882024-12-01912361023611510.3934/math.20241713Research on the wealth management fees of defined contribution pensions during the pre-retirement stageZongqi Sun0Peng Yang1Ying Wang2Jing Lu3School of Computer Science, Xijing University, Xi'an, Shaanxi 710123, ChinaSchool of Mathematics, Xi'an University of Finance and Economics, Xi'an, Shaanxi 710048, ChinaSchool of Computer Science, Xijing University, Xi'an, Shaanxi 710123, ChinaSchool of Computer Science, Xijing University, Xi'an, Shaanxi 710123, ChinaIn this paper, by enhancing the penalty coefficient, the general square loss criterion was modified into a novel criterion to more precisely identify risks and returns. Then, under this criterion, the ideal asset allocation for pension fund participants was investigated considering wealth management fees before retirement. Then, the Hamilton-Jacobi-Bellman (HJB) equation was formulated through the dynamic programming approach, and both the optimal investment strategy and minimum loss function were determined using calculus methods. Finally, how important parameters affect the initial optimal investment strategy and minimum loss function was analyzed, their economic implications were explained, the rationality of the model was validated, and several recommendations for management were provided.https://www.aimspress.com/article/doi/10.3934/math.20241713modified squared loss criterionpenalty coefficientwealth management expensehjb equationoptimal investment strategyminimum loss function |
| spellingShingle | Zongqi Sun Peng Yang Ying Wang Jing Lu Research on the wealth management fees of defined contribution pensions during the pre-retirement stage AIMS Mathematics modified squared loss criterion penalty coefficient wealth management expense hjb equation optimal investment strategy minimum loss function |
| title | Research on the wealth management fees of defined contribution pensions during the pre-retirement stage |
| title_full | Research on the wealth management fees of defined contribution pensions during the pre-retirement stage |
| title_fullStr | Research on the wealth management fees of defined contribution pensions during the pre-retirement stage |
| title_full_unstemmed | Research on the wealth management fees of defined contribution pensions during the pre-retirement stage |
| title_short | Research on the wealth management fees of defined contribution pensions during the pre-retirement stage |
| title_sort | research on the wealth management fees of defined contribution pensions during the pre retirement stage |
| topic | modified squared loss criterion penalty coefficient wealth management expense hjb equation optimal investment strategy minimum loss function |
| url | https://www.aimspress.com/article/doi/10.3934/math.20241713 |
| work_keys_str_mv | AT zongqisun researchonthewealthmanagementfeesofdefinedcontributionpensionsduringthepreretirementstage AT pengyang researchonthewealthmanagementfeesofdefinedcontributionpensionsduringthepreretirementstage AT yingwang researchonthewealthmanagementfeesofdefinedcontributionpensionsduringthepreretirementstage AT jinglu researchonthewealthmanagementfeesofdefinedcontributionpensionsduringthepreretirementstage |