Model And Empirical Research On Open-end Fund Performance Evaluation

Along with the implementation of share reform, Chinese stock market has been ushered in a bull market since July 2005. In this round of the bull market, investors have earned much, which awakes the people's awareness of financial investment and takes many deposits of banks to the stock market. The funds which invest on stocks mostly have yield more than 100% in 2006, as many investors do not understand the stock market, and have no energy to operate, a large number of investors have invest on fund for profit from the bull market, which cause the panic wave of buying funds in the early 2007. However, in this round of investment in China, especially in the early term, investors have showed great blindness, such as many investors only buy one yuan fund, the dividend fund, but aren't interested in the "high-value" fund with good performance, and investors care of the profit only, but don't know of risk. These cases show that many investors lack the knowledge of open-fund performance evaluation. Therefore, it's important to build the fund rating system for evaluating the security investment fund comprehensively and objectively.The research on the performance evaluation of the security investment fund has a long history abroad, and a complete evaluation system has been formed. The security investment fund has existed about 10 years. Although Chinese security investment fund appears late and the history of the fund performance evaluation is not long, there are also a lot of research papers, The system tends to improve. At present, the relevant domestic and international studies about the fund performance evaluation concentrate mainly on return, risks, risk-adjusted return, security selectivity, market timing, performance persistence, performance attribution and so on.This paper has selected 36 open-end funds set up in China before 2004 as samples, and will analyze the samples' return, risk level, risk-adjusted return, security selectivity, market timing, performance persistence, performance attribution and so on. The paper will compare samples and evaluate their overall performance.This paper will analyze open-end fund performance systematically by theoretical analysis and empirical analysis; will analyze the open-end funds scientifically. This will help market participants understand Chinese fund performance and have critical significance for the future of the fund industry.