Study On Momentum And Contrarian Investment Strategy And Performance Of Open-end Funds

China’s securities market since its establishment long-term experienced a boomcollapsed, before the establishment of securities investment fund in China, individualinvestors by academia and practice layer is generally believed that is the main cause ofmarket turmoil, under the guidance of "strategic investors" supernormal development andmanagement of the development of institutional investors, fund as the main marketinvestors, the deal is the purpose of cultivating fund management in order to stabilize themarket, the fund to stabilize the market and fund investment behavior, investment behaviorrelated to the efficiency of the market, the market fully effective, any funds get excessreturns is likely to outperform the market, and a lot of scholars study the momentum andreversal effect existing in Chinese securities market, investors based on momentum andreversal effect of momentum and reverse investment strategy can get excess returns, fundcompany as a professional manager, its benefits are very concerned about fund, in theory, aslong as conducive to the fund performance ascension, fund company won’t let such anopportunity, so investment in the securities market of our country in practice, whether thefund company used the momentum and reverse investment strategy, if adopted, whetherfund momentum and reverse investment strategy has contribution to the fund performance,contribution, this is the starting point of this paper., on the other hand, a large number ofscholars study shows that fund take the momentum investment strategy and reverse damageto the effectiveness of the market, this conflict with the purpose of the managementdevelopment of institutional investors, previous studies have shown that fund momentumand reverse investment strategy can achieve long-term excess returns, which creates a fundcompany irreconcilable conflict with the management. If the fund company adopted afterthe momentum and reverse investment strategy, fund performance has improved, so themanagement need to rethink fund function and position in the market, and to take certainpolicy measures to regulating the operation of the fund and the fund performance evaluation;If the fund use momentum and reverse investment strategy on performance of ascension isnot large, even damage the fund performance, the fund company did\"not selfish or badman\", on the one hand, fund companies did not improve the fund’s performance, on the other hand, the fund company also caused the volatility of the market, the market is noteffective.Based on the above research background, this paper first explain momentum andreversal from the perspective of behavioral finance investment strategies, and comb for fundperformance evaluation theory, and then select before January1,2006established40equityopen-end fund as the research sample, from2006to2012as the sample during the studyperiod, research fund of momentum and the existence of reverse investment strategy and thestrategy of the specific USES, the following research under different market volatility usingthe difference between the two kinds of investment strategy, how impact on fundperformance, on the basis of this puts forward Suggestions to fund some of the company’sinvestment strategy operation and fund management of some policy advice, to enrich theexisting research results.