Research To Factors Influencing Fund Flow Of The Structured Mutual Fund In China

Since the establishment mutual fund industry has been experiencing the mostdifficult period, reform and innovation has became the inevitable choice of the industryto develop,and mutual fund products’ innovation is one of the most important part ofdevelopment. Topromoting the development ofChinese traditional close-end fund,structured mutual fund appeared.But its unique product structure and trading modemake it expand in open-end funds, even though marketremained in the doldrums. Thispaper researchesstructured mutual fund’s emergence and development, findingthatdifferent from normal open-end fund, structured mutual fundhas structured earnings,inside and outside the transaction mode, paired convertible arbitrage mechanism,makingits investors have different decisions when they choose to purchase orredemption. When investing ordinary open-end fund, investors consider the mainfactors including the fund returns after risk adjustment, the net value of fund, the marketreturns after risk adjustment, the fund ranking of fund return, fund dividends, years offund existing. But these general factors have different influences when investors ofstructured mutual fund make investment decision.This paper tries to studyfactors influencing fund flow of the structured mutual fundin China, in order to analyze investors’ decision behaviors.Empirical research showsdifferent from the ordinary open-end fund, fund return,fundnet value, fund existingyearsare not the main factors investors consider, structured mutual fund’ investors aremore concerned about leverage, turnover and premium, and investors tend to treatstructured mutual fund as exchange-traded tools. Besides, the market return has nosignificantrelationship with fund net inflow of structured mutual funds. Therefore, thedevelopment of structured mutual funds should be concentrated on improving theturnover, improving effective leverage to meet investors’ transaction demand.