Study On Factors Affecting Performance Of Equity Fund In China

Since the reform of splitting share structure, fund management companies share the fruits of the development of the security market a lot as professional investors. However, the author has noticed that although during the past two years the performance of funds has increased massively compared to corresponding time period, considering the Equity funds, they behave differently and have distinct performance. In such situation, it has important significance for increasing the performance of securities investment funds to research the effective factors which influence the performance of funds. This article discusses the reasones for which make the performance of equity funds different by using equity funds as research sample.By stepwise regression, we can get the factors which have larger significance and they are the size of fund, stock selectivity ability, market timing ability and assets allocation .The size of funds and transactions rate have 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 these reasons, we gave some suggestions.