Our Country Open-end Equity Funds Performance Persistence Empirical Research

The persistence of mutual fond performance means that mutual fund manager can achieve the same performance over time, those funds that perform well in the past will also perform well in the future and those funds that have bad performmance record in the past will also have bad performmance in the future. Scholars haven’t come to a conclusion about whether the performance of mutual fund of China is persistence. The method used to doing persistence research, the choosing of performance measures, the length of sample period and the size of the sample can affect the persistence research results. I used four methods to study the persistence of a series of performance measures of open-end equity mutual fund of China and found that the performance of mutual fund was more persistence in the long run than in the short run but whether or not persistence phenomenon exsit was quite sensitive to the performance measure used. In addition, I divided mutual fund into different categories according to their size or style and found that the performance of middle size mutual fund was more persistence than that of large size mutual fund and the performance of balanced mutual fund was more persistence than that of growth mutual fund.The whole paper was divided into five chapters. The first chapter is foreword of this paper and the second chapter is literature review. I introduced the main peformance measures which have been used by scholars in the study of mutual fund performance persistence and the main method of doing persistence research in the third chapter. The fourth chapter is empirical study and the fifth chapter is the conclusion.