China's Securities Investment Fund Style Analysis And Performance Evaluation Study

After six-year rapid developed, mutual fund has been the one of selected important investment tools in China. However, with the fund's numbers and types increasing, and with investors' demands diversifying, it becomes the urgent task how to evaluate the fund's return, risk level and the fund managers' investment abilities, also it is important how to help investors select the right funds that suitable to their investment objects.In order to satisfy investors' these demands, this paper present the fund's performance evaluation as the following two ways. The first aspect of evaluation is to judge the fund's factual investment style, so that investors can choose the right one by combining their risk-return preference and their asset allocation with the fund's style. The second aspect of evaluation is to make a conclusion whether or not the fund has investment value. The research in the second part mainly involves funds' return, risk, risk-adjusted return, the managers' investment abilities and performance persistence. Risk-adjusted return is the most important way to estimate the fund's investment value, and investment abilities & performance persistence are the necessary supplement.The paper gives empirical analyses from all aspects based on the theory research, so these empirical analyses can be used in practice. In the style analysis part, I use the return-based style analysis model to judge Chinese funds' actual investment style, and the results can clearly indicate the sources of the fund's return. In the performance evaluation part, I use the factor analysis method to evaluate all kinds of risk-adjusted return methods to get an integrated rating. In addition, investors can make their optimization investment plans combining the rating with the managers' investment abilities and the performance persistence empirical results.