The assets of China's booming mutual fund market surged to a record high in 2006, said an industry report.

Several types of mixed fund -- an investment fund including both equities and bonds -- jumped between 95.15 to 124.74 percent in 2006, said Lipper, a fund rating agency in its latest analytical report.

The whopping growth rate -- well above the global average -- was fueled by the bullish stock market which broke out of its four-year slump last year, the report said. The Shanghai Composite Index registered a 130.43 percent rise last year and the Hushen 300 Index was up 120.02 percent..

The total market value of mutual funds rose 83 percent from 60 billion U.S. dollars at the beginning of 2006 to more than 110 billion U.S. dollars by year end, according to figures released by Z-Ben Advisors, a research institute.

But Zhou Liang, a senior Lipper research analyst, warned fund investors to beware of the risks involved as huge amounts of capital flood the market.

Source: Xinhua