The Empirical Study On Inlfuence Factors Open-end Fund’s Redemption

Open-end fund is not only a kind of investment tool, but also a very important financial systemarrangement. It develops and grows up with the development of economy, improve the income level andthe resulting personal finance and investment needs and arise. Although the time of Chinese open-endfund’s development is not long, but the development impetus is very swift and violent. In our country, since2001September’s first open-ended fund" HUA AN innovation" has been set up, and after several years ofrapid development, as of2010July1,2010deadline for open-end fund’s total assets high amounts to21809.37billion, and the total assets of closed-end fund is to841.13billion, open-end fund has become themain army to our country’s fund industry. Since our country’s open-end fund had been established, on theone hand is the fund overall scale unceasing expansion， on the other hand is the fund whole redeem ineach quarter unceasing occurrence. And, our country’s open-end fund redemption mainly has fourcharacteristics: continuity appearance net-redemption, even irrationality. The open-end fund continues theunceasing appearance net-redemption, even irrational large amount redemption, this to our country openend fund development extremely disadvantageous influence: First, mass redemption has enlarged the fundoperation cost, increased liquidity rist; Second, appears continually the fund redemption causes the fundshare to reduce suddenly, proposed the challenge to the fund continually business capacity; Third, theopen-end fund’s continual and large amount redemption will brings instability to the stock market.Therefore,not only for the open-end fund industry develop stably but also for the fund managementcompany interior risk control and guaranteed the open-end fund investor’s benefit, it is very necessary tostudy the question of our country’s open-end fund redemption.This article the factor that affects the redemption of our country’s open-end fund, proposes thehypothesis, using our country’s open-end fund actual data to carry on the empirical test, By beginning in allredemption data from the second quarter of2009to the third quarter of2011,and establishing regressionmodel, the research methods is in the multivariate linear regression analysis, and using stepwise regressionbased on the single factor regression, not only verifying for the hypotheses, and the stability is validated,eventually reached the following main conclusion: our country’s open-end fund exists truly continual, viraland high redemption; There are many non-rational factors in our country’s open-end fund redemption, such as " the disposition effect" and so on,it cause "the redemption paradox"; Open-end fund in ourcountry present time, scale and other aspects,it is " brand effect", which can boycott of redemption to acertain extent; High cumulative dividends to a certain extent reduces the fund’s redemption rate; Highperformance, high total net worth increased the fund’s redemption. Based on these conclusions, this articlehas put forward a series of suggestions and measures from the open-end fund market environment and theopen-end fund management companies and investors.The structure of the paper is as follows:The first part is the introduction, including the background and research significance; The idea ofpaper and the research methods and thesis framework; Research status of the open-end fund’s redemption athome and abroad.The second part is the theory part which is the introduction of Chinese investment funds, firstlysummarized our country’s investment funds’development,introduces our country negotiable securitiesinvestment fund operation environment, and discussed the meaning of the open-end funds and closed-endfunds as well as the unique characteristics of open fund.The third part is about the open-end fund redemption question elaboration, first elaborated what is theopen-end fund ’s redemption and why exeist the redemption, and introduced the redemption of Chineseopen-end fund situation, finally elaborated the redemption mechanism of open-end funds.The fourth part is the main part of this paper, to our country open-end fund redemption influencefactors empirical analysis is carried out, the first is empirical assumptions, the variable settings and modelconstruction, followed by empirical process and results analysis.The fifth part is the conclusion and relevant suggestions and measures, mainly based on the abovediscussion and empirical analysis, to our country open-end fund redemption and put forward some relevantsuggestions and measures,and summarizes the innovation of the thesis.