Analysis Of Optimal Scale For Equity Open Funds In China

Basing on Equity Open-End Funds in China, this paper effectively discuss the feature of the open funds in China. Especially focus on the most important reasons to impacting the scale of the funds. At the same time, this paper constructs an very suitable regress model for both micro and macro facts of impacting fund scale, and have a test for results of the model.I think the most important fact to impacting scales of fund is balancing between liquidity and yield of investors in securities business. And the yield of the funds is the most important reason for the fund-holder to decide to remain or to sell out. So the yield of the funds is the key reason to impact the fund scale.Base on this point, we try to figure out the optimal scale of our open-end fund in China in two different way. One, in the total scale of fund by the net-asset data; another, in the comparative scale of fund basing on security-market in China data. The two different ways show us the different results.This result is very close to the security-market in China. And it will give both the manger of fund companies and investors in China a better way to measure what fund is better to invest.