Selectivity And Timing Ability Study Of China's Equity Funds

Huaan innovation fund which is China's first open-end fund was established in 2001, which marks the beginning of a new era in finance. Since 2002, China's fund market has entered a stage of rapid development. Bond fund, index fund, money market fund and other fund product innovates after another. As of January 1,2010, the studies indicated that in China total the 621 securities investment funds, and net asset value of 2.67 trillion Yuan including 590 open-end funds which net asset value of the total net assets of the Fund is 95.37%. China's fund market has made remarkable achievements in China's financial industry, which has become an indispensable force in the development of China's capital market, and also played an increasingly important role.As the security market and fund market development, whether China's fund manager can reduce risk to achieve excess profit in a changing security market for investors, which is always the most concerned question among fund investors and companies. This thesis uses T-M model to study and test the selectivity and timing ability of all 99 equity funds which were founded froml.Jan.2001 to 1.Jan. 2010. In order to identify the reasons for poor performance of equity funds' managers, and then put forward suggestions for corrective measures.