The Estimate Research On Open-Ended Fund Investment Style Of China In Bull Market

In recent years, mutual funds especially the open-ended mutual fund has developed dramatically in China. Open-ended fund plays an important part in enlarging the number of china's securities market investors, in increasing the supply of capital market and in introducing rational investment and stabling securities market. But the actual performance of mutual funds in China was always different from the styles its bills previously set. Hence, the research on open-ended fund investment style is useful for the investors to select fund correctly and improves the competition and development in mutual fund industry. Only with the proper investment strategies and clear investment styles, can the investors get the long-term returns.This Paper first shows the theory foundation of investment style from the modem Portfolio theory,advanced manufacturing technology and behavioral finance. Then,it analyses the influence of open-end fund mechanism operating on the formation of investment style.Secondly, it Presents two methods to confirm the investment style of fund, which are Return-Based Style Analysis and Holding-Based Style Analysis, and then constructs the open-end fund's investment style analysis system.Thirdly, this paper carried out an empirical research in three aspects of distribution of income, shareholding schemes and style regression of return, comprehensive evaluates the open-ended fund's actual investment style. Then, it presents that most of open-ended fund's actual investment style have changed. Finally, this paper carries out the explanation on the result of this empirical research, which had focused on the systematic risk, the control of liquidity risk, investment varieties in market and the behavior of fund manager. And then it provided some suggestions and measures to pursue different investment style.