Open-end Fund Net Purchase Reseach Based On ARCH-M Model Fitting

2011fund industry has some problems after a brilliant development, stock and bonddouble play situ-ation even more investors lose confidence and opt out of voting with theirfeet. In this context, the fund investors to fund the purchase and redemption phenomenon hasar-oused great concern of the industry. The funds of investors for subscription and red-emption law, fund managers could reasonably be expected to do the preparation of the fundasset allocation.Review the past, scholars focused mainly on the flow of funds in the fund ind-ustry,from the macro to the observed market fund investors on the open-end fund su-bscription andredemption behavior. Studies have shown that the phenomenon of su-bscription andredemption indeed be tracked. As a starting point, researchers from the qualitative andquantitative two aspects to analyze and explore. Practical work for the fund managers, theinspection a specific open-ended fund subscription and redeem-ption in a more instructive.Therefore, the paper starting from the research background, described the main findingsof the early scholars, to summarize the available information, ideas and inno-vations of thisresearch from the overall cut to the individual. Details are as follows:1) In view of constant variance in the time series and linear regression modelassumptions and the actual situation is not consistent, so this combination of the ARCH-Mtheory. The statistical model to build an open-end fund;2) In stock funds and bond funds were selected a representative sample. The amount ofthe Fund as the dependent variable, the accumulated net worth, the CSI300Index and SSECorporate Bond Index Fund at the beginning scale as the independent variables, the use of themodel to empirical analysis.The experimental results show that the ARCH-M model is a better index equity funds insample modeling. Finally, we may further explore the ideas and the actual application.