Investment Fund Risk And Performance Evaluation

Securities investment fund as a collective investment system, is essentially a relationship of trust. The entities of interests enclosed in the system mainly are fund holders; fund managers and fund trustees, agent relationship and contract are the main connection among them, also the thread in risk hedge and performance appraisal of investment funds. This dissertation includes three chapters.Chapter one briefly introduced definition and main kinds of investment funds, and then advanced main aim and senses about this thesis after presenting the development and importance of investment funds in our country.Chapter two has been deeply discussed the problem of risk hedge on investment funds operating. Firstly, risks on fund operating were classified into two types: agent risk (external risk) and institution risk (internal risk). Further more, agent risk was divided into three types: invest risk, liquidity risk and reputation risk. Institution risk was divided into risk of contract incomplete and moral hazard risk. Such measures as to improve government of fund, to reasonably allocate asset, to design appropriate financing system etc. were supposed, after having intensively studied on institution risk and liquidity risk on opening-end fund operating.Chapter three, the traditional indexes in performance appraisal of investment funds, such as original earning rate, Jensen index, Sharpe index and Treynor index have been studied in comparison. Semi-risk adjusted earning rate, M2 measure index and VAVOC index etc. are improved performance appraisal indexes, and have been introduced. The dissertation put forward a series of indexes to appraise investment funds in China. In addition, Chapter three tried to help to determine the earning and net value of investment funds.The result in the dissertation is meaningful for investors and managers to hedge investment fund risk and appraise its performance, also may help to develop investment fund industry in our country.