Research Of Stock-selecting Strategy Of Chinese Open-ended Funds Based On Stock-holding Preference Model

As an indirect way of financial money, funds have a collection of features, such as expert management, and sharing of benefits and risks. Therefore, the market is increasingly being favored by many investors. Stock fund is the main type of funds. As the largest institutional investors in the market, the fund's stock investment behavior has an important influence to the stock market. So the research of the stock investment behavior of funds is of great significance. These researches can provide theoretical support and reference value to fund investors. Supervisors can also acquire an important basis in making laws and regulations.This article focuses on stock-holding preference of open-ended funds. First this paper reviews the theories about stock-holding preference and performance evaluation of open-ended funds. According to the conclusions in the literature, this paper screens out some characteristic variables. Then, this paper uses factor analysis method to further screen variables, and eliminates some highly relevant indicators. This paper collects the data on stock markets during 2006-2009. According to simplified indicator system, this paper regresses these data using least squares method, and establishes the stock-holding preference model. According to the model, we can understand the characteristic indicators which are more concerned in the process of investment, and then provide investors with some proposals when selecting stocks. In order to test the validity of the model, the paper also carries out a utility analysis of the simulation model. Firstly, according to the data in 2006-2009, this paper establishes a combination of simulated bulk-holding stocks, and then compares it with the real portfolio in 2010 to verify the rationality of the model. The article also carries out performance evaluation. The indicators used are the most common indicators in performance evaluation. According to the study of these indicators, this paper argues that the model is reasonable and has strong practical significance. Finally, the paper comes to the conclusion and raises a number of recommendations.