Investment Fund Performance Evaluation System Building And Research,

A New Approach to Evaluate The Performances of Investment FundsDept. Of Management Science & EngineeringSichuan University Postgraduate CHEN GANG Supervisor LI GUANG JINIn this paper, first of all, we give the brief analysis on the necessity and importance for evaluating performance of some investment funds and point out the defects of traditional methods. And then we represent a new approach to evaluate performances of investment funds, relative to their mean returns and risks at different time horizons. This effort can be viewed as a novel application of philosophy of DEA, which eliminates any need for subjective tradeoffs, vis-a-vis the importance or meaning fullness of performances over different time horizons. From the calculating results, we can find which fund is relative efficient, and know how to improve it and make it relative efficient. Moreover we give an in depth analysis on the reasons why the fund is not DEA efficient or weak efficient and suggest the direction to improve the performances of these funds. Finally, we rank the funds in accordance with efficiency scores and redeced cost so as to make comparison analysis. Also we use this approach to evaluate the performances of investment fund in China.