China Equity Open-end Fund Performance Evaluation Of Empirical Research

With the rapid development of China's capital market, the breadth and depth of market gradually increase, China's mutual fund industry has also been a rapid development, the mutual funds have become larger and more various, mutual fund has become one of the most important institutional investors. The stock-based open-end funds as the most important type of fund products, in all fund types occupy a pivotal position. How to reasonably and scientifically measure the performance of stock-based open-end funds is meaningful to investors, fund management companies and supervisors.Generally, the evaluation of mutual funds performance needs to address the following questions:(1) How to select the reference standard or benchmark portfolio; (2) How to measure the size of fund performance quantitatively; (3) How to determine the source of fund performance; (4) Study the sustainability of fund performance. This paper also based on the framework.This paper use the combination of theoretical and empirical analysis of the research methods, firstly introduced the basic concept of open-end funds and characteristics, compared the open-end funds and closed-end funds. Subsequently, sorted the theory of open-end fund performance evaluation systematically, analyzed various performance evaluation models, methods, including fund risk indicators, revenue indicators, stock selection and market timing ability and the fund performance persistence indicators and models. On this basis, selected 50 stocks open-end funds (established before January 1,2006) as the research object, used the weekly performance data from January 1,2006 to December 31,2009, conducted empirical research, finally obtained the conclusions and recommendations.The results indicate that:from the risk indicators, the risk of sample funds'investment portfolio generally lower than market; from the Risk-adjusted return, most of the sample funds outperformed the market benchmark, the overall evaluation period, the Fund beat the market, but on the other side also shows that our stock market do not yet have a high efficiency; In addition, the study shows that part of the sample funds have certain capacity of security selection, but in terms of the overall sample funds do not have market timing ability; Finally, empirical studies have shown that, in a quarter cycle of view, the sample fund's returns do not have continuity.