Empirical Analysis Of China's Securities Investment Fund Performance Measurement

Since the establishment of the first Fund, it has been about one hundred and thirty years, and the model of performance evaluation has been developed for about fifty years. Although the first fund in China was issued not long ago, it developed fast. In march 1998, the first closed-end Fund was set up in China, after about eight years, great changes have taken place. As a important form of Fund, the Open-end fund has become one of the most important institution investors in China security market. In the recent years, how to evaluate the fund performance is one of most popular topics. The key of the fund performance evaluation, is how to establish a logical model which is accord with the situation of our country and how to use it guiding investors to buy the fund.This paper presents and analyses the different research method, results, and the problem unsolved on securities selectivity and market timing in fund performance evaluation. It describes relevant models, discuss about the sampling and processing of the data and factors, and compare the difference in empirical results through different models. The empirical work is about the 15 listed Opened-end fund investment funds in China during three years. Based on the different benchmarks, we evaluate the performance with those indexes. The results indicate that both benchmark chosen and model applicability has some lack. Because China security market is not an efiFicient market, the performance of fund is better than the market index. The main structure of this paper has four parts. This paper is a summarization for the model of performance evaluation. It has a sense for observe the acting of China security market, grow on the understanding for the institution investor's behavior and function and accelerate the development of China fund industry.