The Influence Of Fund Performance On Investor Behavior

In 2014, our country embarked on a "new normal" development, with the financial reform and the capital market liberalization steadily going on, interest rate market, exchange rate liberalization, "Shanghai-Hong Kong Stock Connect", QDIE pilot Mainland- Hong Kong mutual recognition has made significant achievement.With the new round of "reform dividend”, the development of China's asset management industry ushered in a good development opportunity, opening up new ways of thinking and new directions.In the 21 st century, China's asset management industry has made considerable progress both in size and number. The scale of mutual funds, brokerage and securities and private equity funds had made rapid expansion. According to China Securities Investment Foundation Gold Association statistics show that at the end of 2014 mutual funds, private equity funds and all types of private equity asset management plans total assets reached 2.042 billion, accounting for 42.1% of total managed assets statistics. Compared with the year of 2013, it has an increase of 1.42 billion, up to228.3 percent growth rate. Faced with the coming era of large asset management, it is necessary to understand the status of the fund industry, understand the investment behavior of fund investors, to further promote and improve the development of the fund industry.In this paper, I use an open-ended equity funds between 2009 and 2014 for the study, development and use of fund performance- flow(PFR) theory of open-ended equity fund investors conduct a theoretical discussion and empirical testing. First, the paper examines the performance of different funds based on three different methods measure their impact on investors net capital flows to enhance the understanding of the behavior of fund investors. Secondly, in prospect theory and the theory of rational expectations, the paper based on the combination of RASMER RTEST to improve Performance Measurement- flow model, exploratory analysis of the inverted U-shaped relationship between fund performance and traffic. Finally, the paper introduced institutional and individual investors, based on the previous research paper further analyzes the heterogeneity effect of the relationships of Fund PerformanceInvestors flow.The main conclusions of this paper are: First, on China's open-market stock funds, fund performance has a significant impact on investor behavior, the effect ofthe impact is uncertain, and the measure of Fund Performance is undoubtedly one of the important influence factors. Second, to Fama-French three-factor model estimated that Fund Performance and net flow of funds investors showing inverted U-shaped relationship. Third, the heterogeneity of investors' rational degree on performance-the presence affect the flow relations, and showed significant differences. In view of this article from the perspective of the fund market reforms, the fund market regulation and fund managers, we made the following three policy recommendations:support the development of professional financial institutions, strengthen the supervision of individual investors' behavior, improving fund disclosures.