Study Of Fund Performance And Risk

After years debut, mutual funds have become as one category of the most important institutional investor in Chinese securities market. With more funds being established and more kinds of bonds being created, the methods, that how to precisely measure the performance, the level of risk and the management ability of funds managers, became one of focus from the investor. Objective fund performance can provide the investors with valuable information, from which investors get the right price of the funds. This situation can result into a perfect fund market. Developed countries have research the performance methods for many years, but it is new thing for China for just few years. From the eyes of investors, this paper discuss the relevant issued of fund performance measurement from various perspectives, then reviews and summarizes the theories and methods in this field systematically. Based on that, the paper provides the comprehensive study of Chinese funds performance, using both the history of China fund market and performance standard in China. For the empirical analysis, this paper demonstrated an investigation on the performance for the three years of Jau.1^st, 2002 to Dec.31^st, 2004 for a sample of 15 funds with indexes and methods. The study shows the sample funds, as a whole, did not defeat the market. Finally, the paper proposal some advices for the problems in China fund market.