Stability Studies. Securities Investment Funds And The Stock Market

Since the stock market became an important part of the capital word, the volatility of share price was paid more and more attention. Now as a research hotspot in the field of economics, the relationship between institutional investors and the share price volatility is very meaningful and controversial.Securities investment fund is almost the leading part of the institutional investors, who can directly invest in the stock market. Because of its collective investment, professional financial and dispersive risk features, it has been more and more important in the capital market. China has been making efforts to develop institutional investors in the capital world, wishing that they can work well to keep the share price from extreme volatility. Whether funds can make the stock market more stable is the core issue in this paper. Through the theoretical and empirical analysis of the price fluctuation characteristics and securities investment funds in Chinese stock market, we can have a comprehensive inspection between them.This paper firstly summarized the research theory at home and abroad. Then try to find the relationship between the share price volatility and the fund with the method of GARCH and EGARCH. Finally, explain the result we already get, combined with theoretical analysis and empirical research paper, and give some suggestions.