The Studies On Behavioral Finance Theory And It's Investment Strategies

Beginning in 1960s, behavioral finance became one of the focus in finance area in 1990s.There appears a burst of theoretical and empirical researches on this topic among mutual funds, pension funds and others institutional investors. Behavioral finance funds and investment strategies based on the behavioral finance theory are accepted by more and more investors. But now, There has been very little research into the behavioral fund and it's strategies in China. So researches on behavioral finance and it's investment strategies in China become more valuable theoretical and practical meaning.From theoretical Aspects, behavioral finance develops the traditional finance to explain the open problems and"anomalies"that rise in the finance market. In practice, unlike the traditional finance that comes from the axioms and go to the logic in some sense, behavioral finance directly comes from the practice and go to the practice, and this is the charming to the investors, especially institutional investors. In this paper, I try to test the theory of behavioral finance through the empirical analysis of investor behavior and it's strategies. Then I also try to explain some of the Chinese stock markets"anomalies"by behavioral finance theory. In addition, this paper mainly investigates the investment performance of momentum strategies and contrarian strategies, which are the most important investment strategies of behavioral finance.Then I discuss the reasons for the abnormal profits of significant profits strategies. Finally according to the related empirical results, I construct the behavioral finance fund in China. I think, the results of this paper can be of practical meaning to the innovation of the mutual fund products and their investment strategies.Chapter one is the introduction. It simply introduces the purpose and motivation of the Study, the structure of this paper and the main innovations.Chapter two is on the stock markets"anomalies". The traditional finance theory, such as the efficient markets hypothesis, can't explain those"anomalies". So they have to meet great challenges from behavioral finance both on theory and empirical study. In...