Study Of Performance Evaluation Of China Open-ended Stock Funds

Investment funds are one of the most important parts of financial markets, the study about performance evaluation of open-ended funds plays an important role in judging correctly funds performance for investers, heightening stock and opportunity choosing of funds managers, still heightening management efficiency of funds companies, and at last strenghting security market's financing ability. With the development of Chinese funds market, the study of correct performance evaluation becomes an important problem of discussion. Then the task to study open-ended funds performance and establish perfect performance evaluation system becomes more and more important. This paper is based on this point, using the data of open-ended share funds in 2006, analyzes the theory of funds performance evaluation and does empirical research of open-ended share funds performance.First, the previous researches on the funds performance evaluation have been summarized and reviewed. It's pointed that the theory of open-ended funds performance evaluation is a hot topic up to now. Then the paper introduced the theories and the development of investment funds both in domestic and overseas, still analyze the advantage of open-ended funds compared to closed funds.Second, based on the different indexes, models and methods of funds performance evaluation, previously select input and output index for DEA models, then conduct comprehensive evaluation of open-ended stock funds with DEA model with abstracting factor unsing factor analysis with SPSS and fee index as last input and output index. Then rank the Morning Star index and make a comparison with DEA efficiency rank, in order to be more perfect, again conduct DEA analysis making star index as input index, and at last test the performance durative of different funds.At last, based on the DEA efficiency and factor analysis result, the paper pointed out the problems of open-ended fund, such as management problem, fee and risk control problem, etc.and suggested some advices to perfect and develop our country's funds market, including heightening stock and opportunity choosing ability, lowing down heavy stocks quantity and fee cost, strengthening risk control,and last but not least important advice is funds company must pay more attention on marketing methods in order to form "brand effect".