The Evaluation Of The Performance On Investment Funds--Usage Of An Evaluation System

With the rapid development of the investment funds, the funds play an important role in our finance industry, even in our national economy gradually. So there have some significance in the evaluating the performance of funds. There are several methods to evaluate the performance of the funds in theory, but the comparable research of the evaluation methods and the application to China's funds are fewer. This paper is based on the exacting work, according to this paper's system of evaluation on performance of investment fund, summarizing some methods that are used widely by experts in and out, the methods are: Treynor ratio, Sharpe ratio, Jensen ratio, appraisal ratio, M2 ratio and profit to loss ratio. This paper use them to analysis annually the performance of 45 funds that are accord with this paper's sampling principal. And follow this; this paper uses the TM model to analysis the manager's market timing ability annually, uses the auto-correlation test and ranking order-interval test to test the persistence in short term, uses the half-time's mean order test to test the fund's persistence in long term apart and uses the CPR test to test the total performance of funds' persistence in long term, uses the Spearman test to test the consistency of the different methods. Finally, this paper gives out some conclusions that are educed from the foregoing research.This paper's innovations are: firstly, make the best of the open data to enlarge the sample and the research period; secondly, this paper compares the evaluationmethods and discusses the applicability of the methods respectively; thirdly, thispaper imports the persistence test and the consistence test to perfect the evaluation system; fourthly, this paper evaluates the performance of the funds annually.