Evaluation And Empirical Analysis Of Performance Of Open-end Investment Funds

Since the emerging of the first open-end security investment fund in September 2001, the total amount of 169 open-end security investment funds has been 39.32 billion Yuan by the end of 2005, which accounts 82.7% in the fund market. Currently, open-end funds have become one of the most important institutional investors in securities market. And now it own such a splendid period to develop and expand, and have a bright future, but how to guide the investor to choose the right and reasonable investment strategy of the open-end security investment fund, and how to supervise the open-end security investment fund effectively, these challenges are significant. It means a lot to the fund industry that building up the suitable evaluating system for open-end fund and analysing method of impact factors.This article, based on the typical evaluation methods of the investment funds, analyses the performance of 16 open-end funds from December, 2002 to December, 2005.It tests the performance of our open-end funds from several aspects, such as the analysis of risk-adjusted evaluation, the analysis of style-adjusted evaluation, the analysis of capability to select stocks and time, and the analysis of the impact factors of performance by using the TS/CS model. The result shows open-end funds perform worse than the market benchmark and can't prove its ability of stock-picking when market is fragile. At the same time, the result does not show funds' obvious ability to select time. Base on the style-adjusted evaluation, the result also shows open-end funds perform worse than the market benchmark, which is consistent to the risk-adjusted evaluation. Further more, the scale of open-end funds and the concentration in position has positive effect to the performance.