Empirical Research For The Investment Reference Value Of Fund Rating

With the continuous development of China’s capital market, all of the nationalwealth accumulated gradually and the continuous improvement of the investmentconsciousness, and the open-end fund were receiving more and more attention. Howshould investors choose the appropriate fund? This article will studies the third fundrating agencies and find the relationship between the follow-up of performance andthe rating. Hope could find the correct view to discuss how to treat the ratings, whichhas important practical significance.This paper points six chapters, the first chapter presents a domestic fund, thedevelopment history of the study indicate that this content, research methods andmeaning. The second chapter briefly introduces the other scholars at home and abroadto fund rating to the literature, the third chapter of the various funds, the ratingagencies in detail the rating method, the fourth chapter and the fifth chapter forempirical test part, chapter6analysis the empirical results and inductive opinion.Through empirical analysis found that in selected78fund, from December31,2009to December31,2011, through the Spearman rank test model, proved the ratingshave good sustainable. As time goes by, the average star will significantly reduce, andthe whole star tends to concentration. Through the column contingency table testmodel, finding that the follow-up performance and fund ratings have significantcorrelation, studies show that fund rating data have a certain reference value, namelythe funds which have ratings above three-star (including three-star) will get a muchmore superior performance than the funds which have ratings below three-star.Through the random effects model, confirmed that the fund rating has limitedinfluence to the fund performance, investors should view the fund rating rational.