A Research On Performance Evaluation Of Open-Funds In China Based On DEA Model

Along with the prosperity of China’s fund industry, people increasingly realize the importance of the performance evaluation.A good evaluation system can not only provide useful information to investors but also help supervisor control the fund market and finaly urge the fund industry to develop healthy and Continuously.Many foreign researchers and domestic reasearchers have devoted themselves to the study. Many good methods appeared, especially the DEA method which avoids the restrictions to the traditional methods.This paper use output oriented CCR model to evaluate21open-funds in the period of2004.1.2to2008.12.31. Because the samples are all old funds and the period is long and steps over a complete economic cycle,the results of the evaluation will be mor accurate.This research chooses16indicators to do an overall evaluation work.To avoid the similarity of the indicators and to embody most information of the indicators, the factor analysis is used to reduce the indicators’dimensionality.Finally three factors are put into the DEA model as the input and output.The research funds:The efficiency of the index funds is higher than other funds;The sample funds didn’t have better performance than the benchmarkdur during2004to2008and most funds have bad efficiency.The waste of the input is very serious;The high risk is the main reason which brings the invalidation.The lost caused by the risk is farly higher than its risk compensation.