The Empirical Research On China’s Equity Open-end Funds’ Performance Evaluation

In twenty-first century, China’s securities investment funds entered the glorious stage of development. Open-end funds gradually goes into the public view, and become an important financial tool for investors.2001was our first year of open-end securities investment funds, this year set up China’s first open-end securities investment funds. It has experienced more than ten years of development and two violent fluctuation of China’s stock markets. As of December31,2014, there are ninety-four fund management companies run a total of1897funds. The number of the stock fund is422, accounting for22.25%of the total amount of funds. And the average net growth rate of2014is25.58%. And it points out a new direction of the innovative research for scholars.Fund performance evaluation is mainly from the following four aspects. First of all, is to evaluate the overall performance of the Fund. Secondly, after the accession of risk-adjusted returns on fund performance indicators for horizontal evaluation, Analyze whether the asset management capabilities of its performance from fund managers. Third is on fund performance decomposition study. Finally, is the ongoing study of fund performance. In this paper, only the first three factors were studied. The reason is described in the following part.As the empirical model of this article is based on modern portfolio theory. So we give a brief introduction at the beginning of the article. In the next part we introduce the Risk-adjusted income index and Fund management capability evaluation index. In the empirical part, we choose20standard stock funds as the study sample that they all founded before January1,2009. The sample evaluation time is between Jan1,2009to Dec31,2014. We use the Classical parametric model to analysis fund performance. Concluded that the fund manager does not have a good stock selection and timing ability. In the concluding part of the article, we make summary on the theoretical and empirical analysis done in the text. And then, we look forward to the fund performance evaluation studies.