Performance Comparison Between Close-ended Funds And Open-ended Funds In China

In recent years , Chinese securities investment funds grown quickly ,especially the open-ended funds. Till the midyear of 2006, open-ended funds have outnumbered closed-ended funds nearly four to one. With increasing disparity in quantity, their performance results are being closely watched.In this paper , we theoretically discuss advantages and disadvantages of these two different organization forms funds; then we look at funds from 2003 to 2006 in China , using DEA approach and yield index to measure fund performance . We don't find statistically significant differences in performance between close-ended funds and open-ended funds if taking risk factor into consideration. But in terms of yield capacity, in bull market there 's difference in favor of open-ended funds and in bear market close-ended funds have compared advantages. In a word, open-ended funds don't significantly show standing better performance compared with close-ended funds as many investor expected. Based on our study, we analyze the reason why they behave variously in different market situation and also give advice on the healthy and standard development of funds in China, especially the close-ended funds.