Value At Risk (var) In The Securities Investment Fund Performance Evaluation Of The Application

China's fund industry in recent years with the prosperity of China's capital market and the evolution of financial deepening has been developing by leaps and bounds, the fund has become a major national investment channels, while its own also is an important institutional investors in China's capital market. So, the use of scientific and effective indicators to the assessment of the fund performance, which can form a fair and objective external constraint on Fund Managers and provide the investment decision-making and risk control of the reference indicator for the investors.In the financial research field,this aspect of the theory discussion and practice examination also is a hot spot all the time.In the assessment of Security Investment Fund performance, it is a key to measure the risk accurately that the fund faced. At present,the traditional methods of the assessment of the fund performance on risk-adjusted mainly include tree classical indicators,which are the sharp ratio,the treynor ratio and the jensen's measure,but there are some defects on their risk measuring.This may cause the assessment of the fund performance easily to have the error.In recent years,VaR method has gradually become a finance risk measuring method that is always adopted by most foreign financial institution,Moreover,it has the advantage that can not be compared to other measuring method. Undoubtedly,it is a question of great theory and practical value to introduce VaR method into the risk measuring of security investment fund and the assessment of performance. So, this paper try to introduce VaR method into the assessment of security investment fund performance and discuss the sharp ratio which revised by the use of VaR method in the assessment of the fund performance.This paper includes five chapters and proceeds as follows:Chapter one briefly introduces the background of this paper and the summary of the related articles. Chapter two summed up the theory and related research of the assessment of Security Investment Fund performance. Chapter three firstly introduces the traditional methods of the assessment of the fund performance and analyzes their good and bad points. Then, the new tendencies about VaR method which applied to the assessment of the fund performance is drew out. Well, what is VaR method? How to revise the sharp ratio by the use of VaR method? Chapter three gives the answer too. Chapter four does demonstration analysis on the performence representation between 2003 and 2007 of 17 fund of our country utilizing the traditional sharp ratio and the sharp ratio based on VaR that this paper structured ,the real example has examined the using value in practice of the sharp ratio based on VaR. Then the last chapter of this paper puts forward some viewpoints and advises for the assessment of the fund performance.