The Var In Our Fund Performance Evaluation

Value at Risk (VaR) now is one of the most advanced techniques in the world. The rapid development of security investment funds is becoming the mainstream of our stock market. How to evaluate its performance is most important for the investors. Security investment funds is playing key role in developing our capital market that the research on how to apply the VaR to evaluate the security investment funds' performance in China is taking.There are many approaches to evaluating the securities investment funds performances .In the modern theories, only the approach with risks and returns can significantly evaluate Performances of securities investment funds .Thus, the core of the evaluation is to measure and calculate risks and returns accurately .This paper applies VaR models to evaluate Performances, which conforms to the modern theories and can describe the real returns of the securities investment funds completely and validly.In this paper, the development of our security investment funds and our security investment funds' characteristic are discussed firstly. Then the risk features of the security investment funds in China are analyzed. The traditional evaluation technique is follow.Then the advantages and the disadvantages of the arithmetic are compared The difficulty in VaR and the means are shown. The need to applythe VaR technique to the security investment funds in China is stated......Theevaluation of fund Performance based on return and risk is very important for investors and fund corporations .We discuss the RAROC approach after introduce some traditional ones The new evaluation approach considers the returns and risks of the securities investment funds .It can describe the performance more exactly. The applying in performance evaluation is introduced by analytic demonstration.Lastly, the Problems of which methods suit the situation of the security investment funds in china and the mechanism to push the technique are studied. So we should use VaR in proper way. When we use it we should consider other relative facts and technology.