A Case Study Of The Mutual Fund Performance Analysis

This paper is a case study of investments, which is concerned with analyzing mutual fund performance in Mainland China. It is divided into two parts, the first being the case description and the second the case analysis.The part of the case description consists of four sections. The first section gives a brief introduction about the development of mutual funds in Mainland China. The second discusses some characteristics and problems of the mutual fund in our country at the present time. The third introduces eight typical mutual funds. The final section lists some data of the eight mutual funds, which our performance analysis is based on.The part of the case analysis comprises five sections approximately. The first section describes the modern portfolio theory and its applications in our country. The second section is the parameters calculation. The third discusses the fund managers' various capabilities, such as market timing, industry sector selection, and stock selection. The fourth focuses on the risk-adjusted performance measures of the eight domestic mutual funds and comparison of these performance measures. Final section composes of two chapters, one chapter discusses the various investment styles of the eight mutual funds; another chapter gives some advice to the fund managers and fund investors respectively.The study in this paper reaches the following conclusions:(l) whatever the true reasons are, each one of the eight mutual funds did somewhat well than market over this period (1998.8.31-2001.12.31). (2) As a group, the confidence level of these performance measures is lower at the present time. (3) The degree and efficiency of diversification of these mutual funds is supposed to be improved in the future.