An Empirical Study On Factors Affecting The Yield Of Open-ended Funds

During the past several years, the development of Chinese stock market provided a great chance for the development of the open-ended funds. Investing in open-ended funds has become one of the most important way for Chinese people to manage their wealth. Investors usually make decisions according to factors like fund managers, the scale, expense ratio and so on. How these factors affect the yield? That is the point of this paper. The paper contains five chapters. The first chapter is the preface which draws the sketch of the paper. The second chapter is the foreign and domestic research achievements in influence factors of the fund yield. The third chapter is an introduction of the theories and models on how to evaluate the yield of fund. The forth chapter is the empirical research on the samples. The final chapter may draw an conclusion and give some suggestions. In the empirical research, we pick up 41 open-ended funds which got released before 2006. With the data from year 2007 to year 2009, we first study whether they show excellent judgdment on stock selection and market timing. By building multiple factor model with panel data, we also study how the scale, share held and expense ratio influence the yield. It turns out that neither in stock selection nor in market timing did fund managers perform better than ordinary investors. Besides, share-held and expense ratio have great influence on the yield, while the scale is unrelated to the yield.