Reasearch On The Influence Of Open-end Equity Fund Asset Allocation Concentration On Net Assets Value

In September2001, China’s first open-end fund Hua An Innovation was set up, since then,China’s securities investment fund industry has entered a new stage of development, funds hasbecome the main securities market investment. As closed-end funds was suspended and come due,open-end funds have become the main operation mode and trends of the fund market, no matter invariety, number or asset size. There are varieties of factors influencing the net asset value of funds,asset allocation concentration is one of the important factors. Asset allocation concentration reflect thefund managers’ investment style and their views on the future market, and it maybe affect the net assetvalue of funds in some way.This paper selects41open-end equity fund established before Dec.31,2005as study sample,analyzes the influence of open-ended equity fund asset allocation concentration on fund net assetsvalue from2007to2010. Firstly, describe the performance of China’s open-end equity fund net assetvalue, and analyze the influence factors of China’s open-end equity fund net asset value. Secondly,make use of the Gini coefficient and Herfindahl Index to measure and characterize China’s open-endequity fund asset allocation concentration. Thirdly, make empirical analysis by use of Panel DataModel to study the influence of China’s open-end equity fund asset allocation concentration on netasset value, divide the study period into three periods, further analyze the influence at different times.Finally, conclude the study results, and make suggestion for fund managers, investors and supervisorsaccordingly.The results show that, on the whole sample period, both stock concentration and industryconcentration have very significant positive impact on net assets value of funds. For different cycles,such as, when stock market rises, the stock concentration has a relative significant positive impact, butthe industry concentration does not work in this cycle; while, in declining stock market, neither stockconcentration nor industry concentration play any role in net assets value of funds; then in marketvolatility period, both stock concentration and industry concentration have relative significant positiveimpact on net assets value of funds.