The Performance Of Fund Managers, Moral Hazard And Measures

In the investment process of the open-end funds, it is mainly concerned the conflict of the strategic choice and the interest division between the funds investors and the funds managers. Because the information advantages of the funds manager, the moral hazard of the funds managers is caused, destroying the open-funds'healthy development. Firstly, the articles studies the connotation and the character of the open-end funds, then analysis the main participators and their contradiction. The article also analyses the behavior and the reasons resulting the moral hazard. Finally the text offers some rational suggestion to deal with the moral hazard of the open-end funds investment.