An Empirical Study On Performance Evaluation Of Open-ended Stock Funds In China

China’s fund industry growing along with the development of the capital market, the variety and scale of funds have achieved a breakthrough growth, currently there are 2558 open-ended funds on the market. Funds are managed by professional managers, the establishment of the portfolios also has the advantages of risk diversification, so more and more investors love to invest the funds. With a growing number of investors to buy open-ended stock funds, how to effectively assessing its performance and establish a scientific evaluation system is particularly important, and has practical and theoretical significance for investors, fund managers and regulators.This paper attempts to research the performance evaluation of open-ended stock funds from multi angles, and then select the fund performance evaluation index to make the component analysis, try to give a comprehensive evaluation of the performance of the fund, to comprehensively reflect the performance of the fund.First of all, this paper briefly introduces the background and significance of the topic; finishing the domestic and foreign scholars in fund risk adjusted returns index, multi factor model and the fund manager’s stock selection and market timing ability evaluation model of literature research and put forward the research method and train of thought; reviewing the history of the development of securities investment funds, mainly divided into started groping stage, regulating stage, rapid development stage of peace the steady development stage, at the same time, combing the current situation that at the present stage of China’s securities investment fund market.Secondly, the details of the fund performance evaluation and empirical model, fund performance evaluation are presented. And then the principle and method of principal component analysis in comprehensive evaluation of fund performance are described, which provides a theoretical basis. Among them, the fund performance evaluation indicators include absolute income level, risk level, risk adjusted returns index, multi factor model and the fund manager’s stock selection and market timing ability evaluation model aspects.Again, this paper selected the 126 open partial stock funds established before the 2011 as a research sample, and the daily return data is from January 2011 to December 4, to 2015. First we use the index of risk adjusted return, three factors model and the fund manager’s stock selection ability evaluation model to study the fund performance from multi angles. Then we select the fund performance evaluation indicators by principal component analysis, on the performance of the fund for integrated evaluation, draw a representative of the principal component. Empirical results show that the vast majority of open partial shares of the fund can get beyond the market benchmark portfolio returns, fund managers with some selectivity ability, but generally does not have market timing ability; the proceeds of fund risk, when the fund manager selection capacity of the fund, portfolio concentrated degree and risk fund contribution to the performance of the fund with maximum degree. From the above four aspects of fund performance of comprehensive evaluation can comprehensively reflect the performance of the fund.Finally, according to the results of empirical research, the following four suggestions are put forward: the first one is to improve the evaluation system of the fund; the second one is to improve the fund manager’s stock selection ability, especially the ability to choose when to buy and when to sale; the third one is to enhance fund managers’ awareness of risk prevention and control; the last one is to enrich investors’ investment knowledge of the fund.