Empirical Study On The Overall Performance Of Fund Families In China

Security investment fund has grown at an incredible rate in the past years, and most security investment funds are members of fund families.Compared to stand alone fund, a fund family has greater flexibility in reallocating its human and other resources among fund members for the benefit of the family,even in disregard of some investmentors'benefit. The overall performance of fund families reflects the benefit of all investmentors.This paper first applies to factor method of multivariate statistics to appraise the overall performance of fund families in China on the basis of the index system of fund performance evaluation, which refers to income, risk, fluidity and the ability of fund manager.Then we explore the common relationships among members of fund families which are affected by investment ways of fund families are how to make an impact on the overall performance of fund families .Empirical study of the relationship between the performance of mutual funds in the same fund family shows the fund families which had better overall performance exist higher performance relativity,so they have higher risk.We also find that performance of the star fund results in greater cash inflow to other funds in the same family,but this cash spillover effective doesn't give birth to better performance,which means it doesn't improve the overall performance of fund families.