The Compare Of The Risk Of Different Types Of Open-end Funds Under The Subprime Mortgage Crisis

The first open-ended fund, Hua'an innovation securities investment fund in china has been formally established on September 11,2001, which leading a new period of Chinese fund industry. Although it is developed late than closed-end fund, open-ended fund is replacing the central station of closed-end fund, becoming the brunt and direction for the fund industry. However, because of the low-level system, there are plenty of potential hazard behind the rapid development. Also, along with the finance globalization, the risk at the finance market is not only come from domestic, but also the overseas. The subprime mortgage crisis starts from 2007 prove it. Despite the serious strike, we start consider the importance of measure and manage of risk towards finance market.VaR (Value-at-Risk) is a tool for risk measure and evaluation. Finance risk is growing in the rapid development of global finance market. Former risk measure tool can not satisfy the demand of manager and investor, then, J.P.Morgan Company put VaR method forward. VaR has been used abroad for it is more easer, exactitude and directly. Among various method of VaR, GARCH model overcoming the former flows is more suitable for Time Series Finance.The article introduces the basic situation of open-ended fund of our country, including the overview of the rapid development of open-end funds facing a variety of general and special risks. Next is the main part of the article:the empirical analysis. it makes out a GARCH model of open-ended fund, in the hypothesis of normal distribution, T-distribution and GED distribution, analyzing the background and explaining why contrast to the previous studies, the result is significant different. Also analyze the distribution and the size of the VaR. The last part gives some measures to the risk.