Fund Redemption And Base Civilian Disposition Effect

The development of the mutual fund industry meets the bottleneck of the asset size,which as a whole continues to decline, after reaching3trillion peak of the scale in2007. As open-end mutual fund has become the mainstream investment products since2001, the number of open-end mutual fund is continuously expanding, while redemption constantly appears. The industry’s over-reliance on the bank channel makes its own development trapped. As a result, the analysis of the phenomenon and impact factors of the redemption of our country’s open-end fund makes itself practically significant.From the perspective of behavioral finance, the article studies the single open-end stock fund of hybrid securities investment targeted by the fund for redemption data since its establishment in May2004to December2011monthly customers, the use of positive analysis of the model parameter estimation, and the analysis of the economic meaning of the coefficient estimation of explaining variables, in order to test the disposition effect and find the relevant factors existing in the redemption of the customers of open-end mutual fund.The study result shows that:there is significant disposition effect in the mutual fund redemption.The customers are more likely to redeem when get earnings. The estimates obtained by setting the model using least square method, and the three following conclusions of the correlation between the aspects are:firstly, each month the total number of redemption has a significant positive correlation between the current month’s average market index and the average market index of last month; the proportion of monthly redemption of the total accounts in existing customers has a significant positive correlation between the proportion of the redemption from total accounts of last month in existing customers and the current month’s market average index; the proportion of monthly redemption from the total accounts in existing customers is significantly positively related to the current month’s cumulative average net value and the proportion of total redemption number from existing customers last month.