China's Open-end Fund Performance Evaluation Of Empirical Research

As a new type financial tool, characteristic of collective in-vesting ,expert operating and risk and benefit sharing, SecuritiesInvestment Fund has become an important investment tool throughout theworld .SIF has been existing overseas for over one century ,while in Chinait has just not emerged until 1990s last century ,for less two decades .With the development of Chinese financial market ,it is necessary toaccelerate the development of SIF .Performance evaluation theory of SIF has a long story ,it developsalong with the evolution of SIF . especially after the emerge ofMarkowitz's Portfolio theory ,it got a huge drive .There are three major sections of performance evaluation of SIF.Thoseare : first , evaluation of return based on adjusted risk ,second ,factoranalysis of performance of SIF ,third ,analysis of fund performancepersistence .This context will focus on the first section.This appraisal is mot only to evaluate the operating performance ofthe IF, but also help the vast investors to make the proper decision.The theory of risk-adjusted return mainly contains :single-factor modelbased on CAPM , such as Treynor index, Sharpe index, Jensen index,,multi-factor model based on APT .and the capability of selectivity andmarket-timing. The core of this appraisal is to evaluate the fundmanagers' expert-investment skill. The key to this appraisal is thebenefit and risk of the fund which reflects the manager's ability to getextra information and operate.Under the supervisor's advocating and support ,Chinese SIF hasbecome one of the most important institutional investors .Performanceevaluation therefore become more and more significant . This context,first, introduce the general appraisal index commonly used in the present.By comparison and analysis, it shows the economic meaning of each index,and points out their strong and weak points. Then, it analyzes theperformance of 14 example funds . At last, the context put forward thereader's viewpoint on usage of western appraisal methods in our countryand the respective performance of Chinese fund managers on the whole .