The Model Research And Empirical Analysis On The Valuing Expenses Of The Mutual Fund

Now many experts are concentrated on the fund's expense ratio and structure. A lot of investors believed that the fund's expense ratio is higher than normal. Sensually.. the fund's expense ratio level is related to two factors, one is the difficulty; the other is the scale benefit of the market and fund itself. Investors neither can decide the fund's ratio only according to the expected income, nor can compare the fund cost statically. But we are sure that many funds company adopt the same expense ratio. This expense policy can't reflect the difference existing in the funds, and can't become good competition mechanism. The other hand, the investor's income and cost were not symmetrical. These questions make us to put forward some improvement measures to fund's expense policy of our country.With the development of the fund industry, the discussion of the experts about the fund went further. They widely study on the theory about the fund's expense and income. They also empirically analyzed management ability, the fund's performance and so on. These researches provided some useful and valid reference for the fund investors and make the security market come to a health condition in some degree. However, these researches have some limitations such as special research intention, range and angle. They can't systemically resolve the core problems of the investormost concerning-the balance relationship between the investment income and theinvestment cost that is the problem of the valuing expense. As all we know, any rational investor may be a pursuitor of the value; their aim of investing is to enquire essential value. The present theory and practice can't give some valuable information to the valuing expense. Investor lacks of quantitative model of this aspect. They only predict the future income based on the past performance valuation, and can'1 approximately calculate future income caused by the investment using some already-known data, say valve. So this article comprehensively analyzes the all expense the investors burdened and divides these expenses into explicit cost and implicit cost. Based on this, this article will qualitatively and quantitatively discusses the relative problems about the fund's expense and income from the investor's investment expectation. Then create the valuing expense models of the fund, and test the validity of these models by empirical data. At last we will put forward some suggestions for the expense ratio and structure in the fund industry according to the results of the empirical analysis and objectively existing problems.