A Study On The Influence Of Fund Manager 's Personal Ability On Fund Performance

During the last ten years, funds industry begins to take a shape, it developed from close-end funds to open-end, fractionation funds. There are thousands of funds in the market, it was about10percent of security market capitalization. It played a very important role in security market and risk diversification for investors. During these years, how the ability of fund managers were? How the performance was? Is sustainable of the performance? This article will decompose the funds manager’s ability, then analyze them. For one thing, we investigated whether the managers ability enhanced, or whether the performance was sustainable, for another, I try my best to provide guidance to investors, so that they can choose fund service easily. This article used seasoned pools’models to evaluate funds performance, and use the combination of theory and empirical research methods, the research conclusions were coincided with fact, most managers did have ability of choose stock, but the timing ability were not strong and not sustainable. In bull markets, most managers can outperform the market, but in bear markets, most managers underperform the market. Last, this article explained the phenomenon that the funds performance was not sustainable from the behavior finance point.