Verification Of The Style Drift Of The Open-end Funds And Relationship Analysis Between The Style Drift And The Fund Managers' Ability In Stock Selection

Empirical studies show that the investment style of most open-end funds drift in practice without following what they said in the prospectuses in China. Is the style drift good or bad? It depends on the demands of the investors, the consequences the drift brings and so on. The paper divides the study period into four sub-periods and do the dynamic verification of the style drift phenomenon of the open-end funds according to their different types by Sharpe's Multi-factor Model. Besides, the Style Drift Score method is recommended to measure the degree of the drift. Then the relationship between the style drift and the fund managers' ability in stock selection is also exposed in the paper.