Relative Performance Analysis And Evaluation Of The Equity Open-end Funds

Open-end fund is a major component of the current fund investments in our countryand the evaluation of its performance is also a complex system engineering. While theopen-end fund has a rapid developedment since its birth in China, the progress of itsperformance evaluation is relatively slow, which has brought great inconvenience fordomestic investors, managers and regulators’ work. Therefore, how to establish a moreeffective fund performance evaluation system has become a hot issue for fund industry. Inthis paper, our work was conducted focusing on the current performance of50stock styleopen-end funds in our country by adopting the method combining the theory and empiricalresearch together and the following analysis is as:Firstly, the article has introduced the development status of open-end fund in ourcountry, as well as the practical significance of its performance evaluation. Secondly, bycomparing the traditional method and DEA method for fund performance evaluation, weproposed the advatage of DEA approach for fund performance evaluation and then give asummary by reviewing the related rearch achievement from domestic and aroad countries.On this basis, we introduce a new model on fund performance evaluation-Context-dependent DEA, and give a detailed introduction on its model construction andevaluation principle. Thirdly, the indicators of fund performance evaluation were selectedand the corresponding results were caculated after, on which the empirical analysis werecarried out.The empirical analysis results were divided into five levels for50funds, with theefficiency decreasing from one to five. And the attration index and progress index of everyfund against different levels were calculated respectively based on attractive model inContext-dependent DEA model and deficit model. The empirical results show that Chinese business flourishing growth and competitive advantage of the growth of the Milky Wayhighest efficiency, lowest efficiency ICBC bonus. From the size of the Fund’s assets, themedium-sized fund companies performed better, from the fund company ’s ownershipstructure, the foreign-funded and joint ventures in the high proportion of fundperformance is not good. Finally, the article gives the corresponding recommendationsfrom the perspective of fund companies, investors and securities regulators angle based onempirical results.