China's Open-end Fund Performance Evaluation Of Empirical Research

Though Funds as an invest instrument starting late, it has made significant advance through just a few years. It will have enormous potentiality and broad prospects in the new situation of building and perfecting China's socialist market economy.Scientific and reasonable fund appraisal does well to its healthy development. Objective appraisal can help investors make valid investment decision and also can provide risk control reference; Objective appraisal can provides advantageous information support for the management company's investment control, the personnel stimulation and the product camp sells, forms smoothly investment and management feedback mechanism; Objective appraisal can provides reliable information for the financial supervising and managing department, forms valid external restrains to managers.At present the established fund evaluation modes mainly studying the earnings and risk of fund, the earning usually measured by anticipate or excess profit ratios, but the measures of risk have different ways, generally used the two methods: the method of measuring the earnings' fluctuation (such asσ); the method of measuring the sensitivity of earnings to the sensibility of market factors' changes (such asβ). The two methods have some disadvantages, but as an advantage method of measuring risk VaR's advantages overcome theirs disadvantages to a certain extent. Therefore, we decide to use VaR to revise the traditional sharpe ratio and make an empirical analysis of the open-fund' performance.The main research content and achievement of this article as follows:1. Summarize each fund achievement appraisal method, indicate the hypothesis and the scope of application, also compared with each method.2. Explain VaR in a systematic way, point out its advantage, also summarize the methods of measuring risk. Also use VaR to revise the traditional sharpe ratio in order to overcome its disadvantage.3. We try to build up the multilevel system of fund appraisal, we think it is not only to pay attention to the fund's historical performance, but also to build up analytic system, and understand every factor that influence on the performance of fund, moreover, build up a system to follow the tracks of the fund and find out its trend, thereby it can help investor making accurate forecast to the fund's future performance and the potential risk.