Fund Family Spillover Effect, Investment Behavior And Performance

In recent years, with the rapid development of China’s securities market, the development of the fund industry is to be a trend which cannot be halted. The scale of the securities investment funds is growing, so as the number of the securities investment funds. So the family of funds is the historic moment. Under this trend, the securities investment fund does not exist in an independent individual, but in the form of member funds in the fund family. Therefore, the fund family has an important influence on the securities investment fund’s investment behavior and performance and the overall performance of the fund family performance. When the fund family has star funds, not only the star funds are welcome, its non star funds will also attract more attention due to the star funds. Star funds have a spillover effect on non star funds. On one hand, this is mainly because investors believe that funds in the same family share the same information. So the star fund family’s non star fund has also been concerned by the fund investors. On the other hand, the fund family as a fund management company, its main source of income is from fund management fees, and the spillover effect of the star fund will attract more cash flow to expand the scale of fund family. This makes the fund family have the power to take the relevant investment strategy to get the spillover effect to improve their performance.Firstly, this paper analyzes the spillover effect of the star fund in the fund family by using the non- balanced panel data analysis method, based on the data of the 2006- 2014- year- Open- stock funds in China. Secondly, in order to analyze the impact of the star fund spillover effect on the fund family investment behavior, this paper takes the quarterly data from 2013 to 2015 of the Open- stock funds as sample data, and uses the method of balance panel data regression to analysis. Finally, based on the previous research, the paper analyzes the spillover effect and the effect of the fund family investment behavior on the fund family performance.Research conclusions of the article: There is a spillover effect of star fund on the non star fund in the same fund family, and the spillover effect of star fund can make the fund family have the power to take a common stock ownership and other strategies to get the spillover effect to increase the herd degree of investment behavior in the family. Finally, the paper uses the method of panel data regression analysis to analyze the spillover effect and the effect of family investment on the fund family performance, and finds that the spillover effect is beneficial to improve the overall performance of the fund family. The fund family’s investment herd behavior is not significantly influence the fund family performance.