Empirical Analysis On Determinants Of Open-ended Fund Performance

The present studies of the factors which affect the performance of investment funds in china focus on close-ended funds mostly and the researches in open-ended funds are less relatively. So the research in this article emphasizes on the open-ended funds.First, by stepwise regression, we can get the factors which have larger significance and they are the size of funds,transactions rate and whether the style of funds is principal-protected or not. The size of funds and transactions rate has negative effect on the performance of the funds, by contrary, whether the style of fund is principal-protected or not has favorable influence on the performance of funds. Then we analyze the reasons that lead to this results, and according to this reasons, we gave some suggestions. First, the size of funds should be controlled in the proper scale. According to the analysis in this article, when the size of the funds is 2 billion Yuan, the open-ended funds perform well. Secondly, establish effective motivating and restrictive mechanism. Lastly, set up proper level of transactions rate.