Research On The Redemption Of Chinese Open-end Fund

Compared with the closed-end fund, open-end fund is characterized by the funds share with significant uncertainty. The investors can purchase or redeem fund shares at any time, so its size will continue to change. When the fund is in a net redemption of state, the Fund's operational management will get into difficult situation. So it has become one of the most important tasks to do the research and prediction of the redemption rate of the open-end fund. In real life the Fund's redemption will be affected by many factors, only to clarify the factors affecting the fund redemption rate can more accurate forecasts of the fund redemption rate be made.According to Morningstar's classification of China's open-end fund, those funds will be divided into:the stock type, common bond type, active configuration type, the currency market-oriented and conservative configuration type. In this paper, the funds studied are all established before the year 2006. Different types of open-end funds are studied to find out their influencing factors to their total redemption rate and the net redemption rate. It turns out to be that different types of open-end funds are influenced by different kinds of factors, and for the one kind of fund, its total redemption rate and the net redemption rate are still influenced by different factors. Though, some rules in common can be got:First, from the perspective of market factors, the redemption rate of the funds was positively correlated with the newly established fund, while the net redemption rate was negatively correlated with the newly established fund;Secondly, from the perspective of the performance factors, the cumulative net has negative impact on the redemption rate, units net value and the net redemption rate of growth of unit net value on the impact of various types of funds are quite different; again, from the perspective of the fund characteristics, both of the Fund's duration and size has a negative impact on the total redemption rate and has a positive impact on the net redemption rate; finally , from the perspective of dividends and rates,dividends on the impact of the overall redemption rate is negative, the impact of the net redemption rate is positive, while the costs rate on the impact of the redemption rate of the Fund is not significant.Based on the above conclusions, for the improvement of China's open-end securities investment fund redemption rate conditions, this paper puts forward the following observations: First, according to stock market movements, adjust the Fund Redemption preparation; second, to ensure that the accumulated net value grow, conditional to the implementation of certain dividends; third, large-scale funds and the fund which has been exsiting for shorter time set up to take more precautionary measures; fourth, design flexibility, reasonable purchase rates and redemption rates for the fund structure; 5th ,to establish an effective mechanism to the prediction of fund redemption and response mechanisms.