| The overarching strategy or theory used by either a retail investor or an institutional money manager to set asset allocation and choose individual securities for investment. The investment style of a fund helps set expectations for long-term performance potential and aids in advertising the fund to investors looking for a specific type of market exposure. Investment style of fund is portfolio allocation strategy and demonstrated the concept, the fund manager's investment objects during the process of building the, since each has its own assets in securities of different risk-return level of the corresponding different corresponds to a unique investment style risk-benefit characteristics, the specific performance of the Fund to invest in the market, the operation characteristics. Specific investment style, can guide the operation of the Fund in the market, and further affect the Fund's operating results and net performance of the investment value of the Fund have a major impact, but also reflects the difference lies with the other funds.Researches in investment style of a fund stand on its'own value and practicality. First, individual investors, the risks and benefits of different preferences, many funds to choose their preferred risk income fund of fund investment styles need to get real-time characteristics of the fund investment information to select match their risk appetite and return preferences of fund products; Second, fund companies, for the average investor to provide professional investment products, must form their own characteristics, style analysis through the results of the fund, you can adjust the asset allocation so that the fund's risk-return characteristics and product preferences match investors and attract potential investors to buy, while comparison of fund performance should be taken in the same category of fair and reasonable, the fund's style can determine the investment style of fund management similar comparison among its management capacity, pursuant to select the best fund managers; Finally, regulatory authorities, the fund investment style analysis in favor of the fund categories, the actual control of its operation, according to its characteristics the classification more effective supervision. Thus, open-end fund investment style of the research has very important significance.Fund academic research and development investment styles of modern financial theory is applied as a branch of their development are closely linked, the fund by investment style of the profound impact of modern financial theory. The theoretical basis of investment style, portfolio theory from the mean-variance analysis, portfolio style, this is the most primitive and rough division; fund negative and proactive investment style classification due to the effective Fama's market hypothesis; the subsequent rise of behavioral finance theory, the dynamic effects, disposition effect, herd behavior theory of the Fund's investment style also played a contribution to the development.The first chapter describes the research background and significance of paper. We introduce the status of the research projects to determine the research paper, a clear research methods; The second chapter describes the profile of open-end funds and characteristics analyzed of the operation of open-end fund's investment restrictions and management processes, and reviewed the development of China's history of open-end fund; third chapter defines open-end fund investment style definitions and classification standards, and open-end fund's investment style of the two Analysis:Return-Based Investment Style Analysis and Holding-based Investment Style Analysis were compared; the fourth chapter, use Return-Based Investment Style Analysis of China from 2007 to 2009,16 open-end fund's investment style the empirical analysis, the analysis of the general fund investment styles changed during the conclusion; fifth chapter analyzes the empirical results of its causes, in this based on open-end fund in China to establish its own distinctive investment style proposed recommendations.Our paper contributes previous literature in several aspects. Firstly, we combine qualitative analysis and quantitative analysis methods in this paper. This paper studies the specific concept and theory, research results at home and abroad to review and comment briefly introduce the main fund investment style analysis theory, and based on prior analysis of open-end fund's investment style is judged. This measurement method also used as a basic financial analysis tools, Return-Based Investment Style Analysis after the investment style of fund research. Secondly, we also used comparative analysis. This fund's prior investment in the same style and empirical ex-post investment style are compared and analyzed changes in fund styles or conclusions. Finally, in the above analysis measures on research methods using open-end fund in China to develop their own distinctive investment style recommendations.The data used in this paper comes from 16 mutual funds set up after "Securities Investment Fund Law " in 2004, specifically Huaxia dapan, Changsheng growth, the rich source of balance of days, the rich Shui, Yi Fang Daping stability, the country voted the core, Penghua China 50, Bank of growth, Warburg income, Allianz Global Investors Selections, Everbright Pramerica Quantifying core, the JP Morgan China Advantage, Franklin elastic market, the core values of ICBC Credit Suisse, China Universal Advantage Select, build lasting value of these 16 letters open-end funds. The study period is January 2007 to December 2009.We find that 50% of the fund has changed its investment style, including the Fuguo tianrui, the core of the country to vote, Bank of growth, Allianz Global Investors Selections, Everbright Pramerica Quantifying core, Franklin elastic market, the core values of ICBC Credit Suisse, CCB lasting value. Chinese market, Changsheng growth, the rich days of the source balance, stability and easy Fangda Ping, Peng China and China 50, revenue Warburg, the investment JP Morgan China Advantage, China Universal Advantage Select then hold on to claim their own investment style. During this period asset allocation funds received by the average revenue accounted for 84% of total revenue, while the fund manager's stock selection and timing abilities of the total revenue contribution of 16%.Funds are found to be correlated with economic growth situations and are showed to be balance type of funds except the core values of ICBC Credit Suisse, China Universal Advantage Select showed growth in the 16 sampled funds. Analysis of the world experienced a period of financial crisis the economy into recession; China's stock market has inevitably been affected. In the turbulent stock market is the best way to spread risk diversified investment, most fund performance is not surprising that a balanced style. This also shows in the country's investment style has not yet fully formed, the fund manager will change according to market conditions change their investment style in order to seek higher returns.The results obtained in this paper, we give a reasonable explanation is that China's stock market to establish a short time, market efficiency is limited. In the developed countries of Western capital markets, the stock market as a barometer of the national economy, can effectively reflect changes in economic conditions. But China's stock market not only by the impact of economic conditions, more often from the government by the impact of various policy tools. Investor is easy to state the effects of the policies that exaggerated and extreme, then the mad rush to buy encountered good news, bad news is if all the selling, the stock price with the publication of news volatility, stock price fluctuations influenced by policy far greater than the influence of the basic, decentralized systems can not risk a major part of the overall risk. Coupled with China's stock market is only mechanism to do more, there is no short-mechanism, the fund manager is difficult to pass a unique investment techniques and investment ideas to get ahead of the competition continued performance. In this case, China's stock market on a combination of different investment styles change in synchronization with the composite index of basic stock style similar result even if the fund takes a different investment style, but no difference in final yield. Avoid risks and ensure the objectives of the proceeds to promote, the fund managers tend to follow the market, adopt different investment styles, and deviate from the prospectus of a fund's style in the claims. The performance of the fund volatility characteristics of the investment style is largely the legacy of the stock market the product market stage.The main mutual fund investment products including bonds and stocks, relative, financial derivatives market is not developed, the investment and hedge funds are limited, while the stock market and the Western developed capital markets, the smaller the company number, especially in a truly sustainable business capacity, sound financial policies, strong R & D are not many high quality companies. In practice, in order to give full play to the advantage of a diversified portfolio of investments, a diversified investment fund should be at least 50 stocks, but China A-share market a limited number of listed companies, to get rid of losses and irregularities in the company, according to investment style classification, the more reduced the number of in-depth study of the fundamentals, it can be assured that investment in listed companies is very small. In this market environment, fund managers made it difficult claims to find a suitable investment style classification of stock, but as long as high-quality stocks tend to hold, so that the fund's investment style change.For fund companies, we suggest that firstly fund companies should establish a long-term stable investment philosophy. With the further development of the market into the fund, the fund industry, competition will become more intense, you want to stand out in the same fund, which requires fund managers to gradually develop a stable investment concept, form their own unique investment style rather than follow the market hot chase sell. China's securities market gradually matured, the frequent changes of style will bring a large transaction costs, while the listed company's long-term viability studies to select suitable equity investments and provide investors with appropriate risk-return preferences of the Fund of its products, establish the image of long-term investment fund to build fund brand, can be a long-term development of the Fund. Second, we should strengthen the development of qualified personnel. Rapid development in the fund industry today, the fund managers need a group of high-quality talent management and operation of the fund, they need to have a profound professional knowledge, rich experience in investment policy of keen insight and considerable decision-making, fund managers is the fund's portfolio managers and investment objectives of the executives, fund companies directly affect the quality of personnel performance of the fund to strengthen the development of qualified personnel, training and introduction of advanced technology, personnel management, the fund company to build its own core competitiveness of great significance.For investors, we suggests investors should develop long-term value investing philosophy. Awareness of individual investors rational investment return, will reduce pressure on short-term performance of fund managers, so that fund managers to implement its investment strategy and investment philosophy, which insists on the fund's investment style, to achieve the Fund's long-term value, and investors from the benefit. Second, investors should learn some investment knowledge. Investment knowledge by learning to master certain investment techniques, and establish their own judgments, to avoid the blindness of the fund to purchase, select the appropriate risk-return preferences of the fund, rather than relying solely on the securities intermediary or fund marketing staff side of the story.Last but not the least, we suggest that regulators should improve the information disclosure system to regulate the behavior of fund managers, empirical results show that China's open-end funds in the investment process has deviated from the prospectus as part of the claims of investment style, which fund investors caused damage to the interests. Open-ended fund in China announced an investment portfolio each quarter the top 10 holding, published twice a year position in detail the situation is not conducive to investors in a timely and effective operation of the fund in the current situation and investment style. Regulatory authorities should improve the fund's information disclosure system, and effectively improve the timeliness of information, completeness and accuracy, and enhance the binding contract of the fund managers, fund managers in the fund requires substantial changes in investment style investments to the fund when disclose to investors that a real and effective assessment of fund investment styles. Second, we should establish a unified, standardized securities investment funds investment style classification system. Only major categories of securities investment funds in the division system, yet authoritative criteria for the classification norms, the fund claims in the prospectus diverse style is not conducive to ordinary investors to position the fund, regulators can learn from the foreign mature markets using the funds standards, such as ICI or the United States Morningstar classification criteria for the classification, the establishment of a standardized classification system for securities funds. |
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