The Research On Performance Evaluation Of Security Investment Funds

Security investment fund industry is an important component of modern financial sector. In modern economy, the mutual fund plays an important role; it is not only the capital market regulator but also the world's economic booster. With the process of globalization, China's security investment funds have developed rapidly. Only the year 2006,China has issued over one hundred new funds; to April 2009 China has 455 open-end funds and over 200 private funds, with a total size of over 3000 billion Yuan. With China's mutual funds industry flourishing, a growing number of funds came into investors'options, thus the effective evaluation of the mutual Funds'performance will be more urgently required.The article mainly use mutual funds'performance evaluation methods dominated in western capital market on Chinese security market, try to do some empirical research of Chinese security investment funds.The result of the study indicates that:1)without concerning the risk, Chinese security investment funds did not over perform the aggregate market, while half of the Chinese security investment funds exceeded the benchmark through risk adjustment.2) On average, Chinese security investment funds'risk are matched with their benefit, which shows the professional investments of the mutual funds.3)Generally, the Chinese security investment funds didn't have the ability to earn extra profit at corresponding risk level.4) The study finds little evidence shows that the security investment funds performed well at security choosing and time selecting.5) The performance of the open-ended security investment funds are well related to the security market, which is helpful for keeping the steady of the security market.6) Compare with the open-ended funds, the private funds performed better at earning profit and risk managing.