Securities Investment Fund Performance Evaluation System

The security investment funds have made a great development in thepast several years, and it is an important stratagem to cultivateorganization investors such as security investment funds in order toimprove our capital market. The market is teeming with more and morenew fund management companies and new kinds of funds, and Chinesesecurity investment industry is in a fast developing period. Therefore,more and more experts pay attention to the operation and characteristicsof the funds, trying to learn the performance evaluation of funds and theinfection factors. How to choose funds to invest? How to lower the riskand earn good profit? The answer is that you must do fund performanceevaluation fist and analyze it. Another function of fund performanceevaluation is to serve the investors, help them find appropriate fund toinvest. So it becomes more and more important to research the theory andmethods of fund performance evaluation. Much research has been done on the performance evaluation offunds, and some experts abroad have set up a mature and systemic theorysystem through decades of hard work. But related research in China isstill very primary because the security investment funds appear and existin China for a short time. This paper examined and studied the theoreticalbases and methods in evaluating funds performance, based on the typicalevaluation methods and our practice, the author try to build a moreappropriate evaluation system. The investors can understand the funds'real venture and risk by using the system, so they can invest moreadvisably. Besides, the performance evaluation system also helps the fundmanagement company to improve their operation and the regulatorydepartment to find problems in the market. Some domestic institutions have made their fund evaluation systems,such as HaiTong security company, TianXiang investment consultantcompany and so on. But they all have some disadvantage. This paper'smain purpose is to design a set of funds evaluation system based on theformer research and study. This paper constructs an equity fundperformance evaluation system according to domestic practice byreviewing foreign evaluation methods. The system consists of three parts,i.e. the risk-return characteristic of funds, the liquidity of their assets, andthe level of investment management. This paper establishes an integratedevaluation function by factor analysis and determines the rates of fundsby cluster analysis. This paper composes of six chapters: Chapter one, the author summarizes security investment funds'evaluation, reviews the development of investment funds'evaluation, thesignification and actuality of measuring investment performance. Chapter two, the author summarizes the theory and method of fundsevaluation. Firstly analyzes the theoretical bases of funds evaluation,secondly analyzes the primary method, then appraise them. Chapter three, the author designs an evaluation system based on thepractice of our security marker and funds. Firstly expatiate the principleof design, then choose appropriate index to value the risk-returncharacteristic of funds, the liquidity of their assets, and the level ofinvestment management. At last the system include eight index such asSharpe ratio, IR ratio, RAROC ratio, security selecting ability, timingability and so on. Chapter four expounds the software used in the empirical study,include the characteristic and function of SPSS, then explains thepractical use of it. Chapter five, the author gives an empirical study on Chineseinvestment fund by use the evaluation system built in chapter three, anddetermines the rates of 17 open-end funds by cluster analysis and factoranalysis. So the system built in this paper is proved feasible. In the last chapter, the author gives a discussion on severaltheoretical and practical problems. Such as how to built a independencefund evaluation institution, and how to construct and improve a standarddata-base of security market. In this paper, the author makes several innovations, the mostimportant of which is:(1) the co...