The Correlative Research And Positive Analysis On The Size And Performance Of Open-End Fund

Since the first open-end fund, Hua An Innovative Investment Fund came up in 2001, the open-end fund has occupied the leading position compared with the close-end fund with the dramatically rapid development of Chinese fund industry. By the end of 2006, the number of all securities investment funds is 321, which include 53 close-end funds and 268 open-end funds. In fact, the two problems, whether the bigger fund size the better and whether fund size exerts an influence on fund performance, had been studied by international and national researchers, but most of them just focused on close-end funds rather than open-end funds and do not come to a same view of point. Therefore, by the study on the correlation of fund size and performance, the purpose of the dissertation is to give some idea how to raise the rational fund size and provide some decision-making ground for the authorities to improve the efficiency of securities market and the healthy development of fund industry.The dissertation involves 6 chapters. In the first chapter, a background of the research and the present situation of the latest research development are given, and then the objects, the outline and the methods of the research are provided. In chapter 2, the theory and the history of investment fund are stated. In Chapter 3, Capital Assets Pricing Model (CAPM) is used as an academic fundamental. The dissertation makes use of an average AUM (Asset Under Management) of open-end funds as a sort standard of raising fund, in order to sort 73 sample funds to 3 group(large-cap, mid-cap and small-cap).Some international popular evaluating indexes of fund performance are adopted, meantime considering Chinese present actual situation. In fact, 12 indexes are used to fully evaluate the performance of open-end funds. And the data of evaluating indexes are worked out eventually. In chapter 4, using the positive analysis of the data, the difference of the performance of 3 kinds of fund size is studied by distributing of evaluation indexes, Average-returns analysis, One-way ANOVA analysis and Factor analysis. And the result is analyzed in the end. Based on the result of the positive analysis above, the dissertation discusses some problems of the rational development of open-end funds in Chapter 5. In chapter 6, the dissertation draws a short conclusion, and several feasible policy suggestions for the management of fund are proposed.