Performance Assessment Of Securities Investment Fund And Evidence Study

Scientifically and rationally evaluating the performance of investment funds plays an important role in the healthy development of funds industry. Precise information reference can be brought to investors by objective performance evaluation, which may help them recognize the investment style and the value of investment funds. Meanwhile, objective performance evaluation may also provide useful information to fund institutions for investment control, human resources incentive and marketing promotion. And which will build an efficient system of investment and management.To begin with, this paper presents the historical and current situation of fund industry both home and abroad. Then a detailed description about the theory of fund performance evaluation and the performance evaluation system is mad.e since 1960's, which contains the classical single performance evaluation ratio, the multifactor evaluation model, the timing ability & stock selecting ability of fund managers, the persistent of fund performance analysis and the morningstar evaluation system.Under this analysis, we then provides an empirical analysis of the performance of 33 stock funds using not only classic mutual fund performance measures such as Jensen's measure, T-M model and H-M model, but also two new risk-adjusted ratio based on Active Risk or Value-at-Risk. The empirical evidence indicates china stock funds can surpass the benchmark in bear market, and our sample of stock funds possess positive, but small, selection abilities and negative timing abilities. The findings also prove many of the funds are not well diversified.