An Empirical Study On Performance Evauation Of China’s Stock Open-End Funds

Securities investment funds are developing rapidly in the domestic financial markets. China’s funds have also about ten years of the hostory of development since the official release of the first fund, but securities investment funds relying of their own advantages have been popular for a lot of investors as a low-risk wealth management product. To this day. China’s securities investment funds have been the largest institutional investors in the capital markets, and their investment decisions and investment performance will have a significant impact on the entire stock market. Securities investment funds with their own advantages get an accumulation of social idle funds, and the optimal allocation of social funds is achieved by making full use of social idle capital to provide many investors with investment channels, and to provide the community with low-risk investment products. Second, funds will gain from the investments of the capital absorbed from the community into equities, government bonds, and corporate bonds, and have also become of of the direct investors in the market. Therefore, the performance of the securities investment funds with a dual identity will directly and indirectly influence China’s securities market.Recently, along with another new round of China’s inflation becoming even more violent, the continued downturn of the stock market and a negative bank interest rate, securities investment funds dependent on their investment in portfolio, risk diversification, professional financial management, and low cost and other advantages are again attached to social investors. Thus, can securities investment funds as professional institutional investors get a high and stable profit by virtue of their capital, information, technology and talent advantages? Would China’s fund characteristics constitute a substantial impact on fund performance? In the paper, multi-year stock and partial stock funds from the beginning of2005to late2009are selected, and based on weekly data, the performance of the funds is assessed in a term of six months. An index system in this paper is established from four aspects namely, the rate of return of funds, risk-adjusted returns, stock picking and timing ability of fund managers and fund performance persistence. In the paper, the net worth earning ratio of funds, Sharpe index, TM model and cross-sectional regression method indicators are selected to assess the fund performance; at the same time, the funds" own characteristics are analyzed, such as the establishment time of fund, investment style, ownership concentration, fund size and the market status of China’s stock market and other factors whether they will substantially affect the fund performance, in order to achieve better and more comprehensive development of China’s securities investment funds; this will also provide investors with a reference to select and invest securities investment funds. The study has found that:China’s funds in most of the periods can overcome the market, and it is worth long-term investments for investors; some of the characteristics of China’s funds constitute a significant impact on fund performance differences; the trend of China’s securities market is highly correlated with the fund performance and has a significant impact on the fund performance.