Hardware Research On The Performance Of Value Investment Funds And Trend Investment Funds

In recent years, Chinese rapid development of securities market, which is encouraged by the government, has helped the growth of securities investment funds in China. According to the increasing kinds of securities investment funds, it is hard to tell the differences of their performances. The development of securities investment funds is in relation to performance measurement; a scientific performance measurement will improve the development of the funds market, that is why the researches on the investment styles'distinction is more and more important these years. Although foreign and domestic researchers have done lots of researches on the relationship, but funds market in china is not the same with those in developed countries, so we can not use foreign experiences completely. In order to keep Chinese securities investment funds always developing healthily, the most important thing is to set a scientific index of the investment styles. In result, valuing the different kinds of funds by setting an index which adapts to our country's environment becomes an important process.Firstly, this article briefly introduces securities funds developments in foreign and domestic market; then gives the definition of investment style and style drift; subsequently, we calculate the performances.Secondly, this article carries out an empirical study of two types of fund-styles' performances. The index is based on the mean fees of every year. This paper contrasts the performances of the top 50 and the last 50 funds, the top 50 funds is called value investment and the last 50 funds is called trend investment, then we found that the performances of the two styles are obviously different and the performance of trend investment style is better than the performance of value investment style.Finally, this article discusses the reasons of the different performances between the two kinds of funds. Including the special political and market circumstances, fund managers' adjustment and performance pressure, the convergence in investment behaviors of fund managers, the idea and knowledge about the value investment funds, such many reasons caused the result. After that, this article gives the relevant recommendations from views of the regulatory authorities, fund management companies and other related service agencies.