Research On Investmentment Style Of Open-End Fund In China With Risk-Based Approach

Open-end fund is one of the most popular kinds in the fund market. The development of this market in China has promoted the expanding of the quantity and variety of open-end fund. Therefore, as for investors, it is the most important question that, how to valuate the fund and make proper investment decisions, on the base of their own perspectives about risk and return. Also, clear investment style will facilitate investors to compare performance of fund-managers. Furthermore, scholars in America have founded, almost 90% of difference in return of mutual fund can be explained by investment style. So, this paper will make analysis on open-end fund in China.Currently there're two style analysis methods all over the world, including Holding-based Style analysis and Return-based Style analysis. The former one demand the detail information of all the stock the funds hold. So it takes large cost and is data unavailable. And the latter one is easy to use, which makes it widely applied both in academy and in practice.