Performance Appraisal And Analysis Of Open-end Stock Investment Fund

March1998, the first closed securities investment funds were issued in China, and since thenChina’s securities investment fund industry has experienced a period of rapid growth. The research onthe performance appraisal of securities investment fund is of crucial significance in the improvementof China’s securities markets structure, the enhancement of the market efficiency and the promotion ofthe sound development of the securities markets.This paper consists of6parts. The first part includes the research background, significance and anoverview of the studies at home and abroad. The mainstream fund appraisal models including SharpRatio, Treynor’s Measure and Information Ratio are introduced in the second part. The third part isabout the performance appraisal of equity funds in bull market. In order to analyze objectively, weselect a series of data of equity funds in a long wave market before and after the year of2007, calculatethe correlation index and analyze the variation trend and the cause of it. The performance appraisal ofequity funds in bear market and consolidation market will be done in the fourth and fifth partsrespectively. At last, we make choice of the appraisal criteria of fund performance, appraise the fundperformance using the sample data, and summarize briefly.The innovations of this paper can be found in two aspects. The first one is the comprehensivenessof appraisal. The available studies always deal with the performance appraisal in one type of market,while we appraise the fund performance in all three types of markets, which are the bull, bear andconsolidation market. The second one is the method of factor analysis we use. When the availablestudies only conduct econometric analysis using sample data, we use four factors to conductperformance appraisal and analyze more thoroughly by using two factors: the equity-choosing factorand the timing factor.