Empirical Research On Performance Persistence Of China Open Equity Fund

With the rapid economic growth, China's securities investment fund industry has been sustained, rapid development, has been with the banking, insurance, join to become the three pillars of China's financial markets. This paper reviews China's fund industry in the course of development by leaps and bounds and found that relative to the closed-end funds, open-end funds have a clear institutional strengths, can be more effective protection of the interests of investors, has become China's fund market's leading product.Most investors by choosing to invest in securities investment funds, but based on historical performance, to select the fund that most investors are by default a premise: the Fund's performance has sustained. Then the fund is expressed as "the strong Hengqiang the weak constant weak" mean? Investors in the Fund based on past performance to predict future performance in order to build a portfolio with excess return, such good intentions can be achieved in practice do? This is through the evidence to answer this question.Section 1 is introductory part. Topical background, motives, perspectives and topics of significance to study the idea will be briefly introduced. Motivation in the study had reviewed the development course of China's fund industry. Section 2 is a literature review, will introduce the Research Fund Performance Persistence of foreign classic articles and domestic Research.Section 3 is designed empirical studies, mainly including the Fund's assessment of the performance indicators for the identification, introduction to research methods and models to study the sample and data sources, market benchmarks and the selection of risk-free rate and so on. Selected samples of as much as possible, and the sample data taking into account the impact of dividends.Section 4 is the full text of the focus of empirical analysis, using cross-sectional regression and contingency table are two ways to study at one month, three months, six months and four years of the sample in different time slots on the performance of the Fund continued to issue press fund investment style classification of the evidence. Section 5 is to study the conclusions and outlook summarizes the empirical findings, and further research is suggested.The main conclusions of this paper are: Overall, the study period is one month and three months, China's open-end equity fund's performance did not show remarkable continuity, but when the study period was extended to six months, and years, the fund have shown remarkable continuity, and continuity of a gradual increase. The study also found that the Chinese open-end equity fund is more willing to take risks choose to invest in growth stocks, few foundations choose to invest in value stocks, some of the fund can continue to achieve excellent performance, and some foundations continued poor performance.