Research Of Fund Investment Behavior Based On Economic Control Theory

The rapid development of securities investment fund is an important mutative characteristics of the global financial system since the twenty years. It makes the traditional financial system, which takes the bank as the medium of it,has a great profound changes. The securities market dominated by the institutional investors which take the securities investment fund as the main representative, is fully replacing the banking system that have been taking over the central position of the traditional financial intermediary, and it has triggered an academic theory wrangling on the future development status between the institutional investors and bank. Although China’s securities market hade established only ten years, but it has grown rapidly and become an indispensable important component of the national economic life. The China securities investment funds’investment philosophy, investment direction, investment style, investment strategy and management level and etc plays a more critical role in the securities market trends and market idea guidance.Fund has increasingly become the most important institutional investors of our country’s stock market,and the funds’investment behavior in stock market not only produced significant influence on its own performance, but also become an important factor that affects the stock price movements. Therefore, researching about the fund investment behavior will help us understand the fund its own net value,it also may conduce to deepen our understanding of the operation rules of the whole stock market.With the rise of behavioral finance, it has important theoretic value and practical significance that to introduct behavioral finance theory to analyze China’s fund behavio, whether to the regulatory authorities or for the trader itself. In the stock market, fund investment behavior is a reaction made in a particular market system and cultural environment, its investment behavior is evolved from the interaction process of many factors which is deterministic,stochastic and fuzzy. Due to the complexity of the fund investment behavior and China securities market unique system background, to analysis fund investment behavior, we should not only consider institution, culture and other environmental factors, but also consider the influence of the fund manager individual characteristics to their investment behaviors and abnormal findings,which may help us reveal the decision mechanism and essential characteristics of the fund manager investment behavior. Research about Stock market investors behavioral is the most actual, the closest to investors, and the most dynamic research.I intend to analyze investment behavior of fund from the perspective of the theory of economic control, and establish analysis framework with regard to behavior of fund investment based on economic control theory. In this article I will research fund’s investment behavior from the following aspects. First, I will analyze financial theory of fund’s investment behavior and control theory; Second, I will research fund’s strategic asset allocation behavior; Third, I will research the behavior deviation of fund’s tactical asset allocation; Fourth, I will research effect of the fund investment behavior on market; Fifth, I will take comparative analysis between fund’s investment behavior and investment behavior of other institutional investors.For objectives of this study, I will take base on behavioral finance, economics and management science. I will research fund’s investment behavior in accordance with the ideas from theory to empirical. The "problem oriented ", "background dependent"and"technical support " feature will be reflected in management. I will use methods of Normative and empirical analysis, the combination of qualitative analysis and quantitative analysis, induction and reasoning methods. The author believes that innovation is reflected in the following aspects:First, management control system of the Fund investment is constructed on economic control. Aspects of systems thinking, control theory and information theory optimization and risk control technology thinking have always run through fund investment behavior control in this article. In this paper, modern financial theory, systems theory, cybernetics and information theory are applied. I will study fund investment management as a dynamic, open economy control system.Second, build the dynamic model of strategies asset allocation within the framework of the next partial risk aversion.Third, analyze the deviation of fund investment behavior and the causes in many ways and many angles. Although many reasons caused the deviation of fund investments, but the reasons basically can be summed up as the external market environment and institutional arrangements.Fourth, when we research the effect of fund transactions on the market stability, difference of the macroeconomic environment will be considered. Discounting the impact of macroeconomic variables, we can more accurately study effect of the behavior of the micro variables including fund trading on the stock market stability.Fifth, absorb positive feedback trading ideas on along the path of the game between noise traders and arbitrageurs in the behavioral finance (Andrei Shleifer,2003).