The Study On The Investor Sentiment Management Model Of A Fund

Traditional financial theory is based on the premise of the efficient market hypothesis,which thinks investors are rational in the stock market,the behavior of investors will have no additional impact on the market and their mood also won't affect asset prices to produce arbitrage opportunities.But with the emergence of a series of financial anomalies,traditional financial theory have been unable to make reasonable and effective explanation,so behavioral finance theory arises at the historic moment.Through a lot of theoretical and empirical studies,behavioral finance theory found investors are not completely rational in the market.They will be influenced by all kinds of information and emotions and the irrational characteristic is diverse.In addition,investors' behavior and decision making will also affect the movements of the stock market.Then,the theory introduces the investor sentiment in the asset price,which provides a new thinking to explain the asset price volatility and provides a new way for the further investment decisions.Chinese Stock Market is an inefficient market,so information asymmetry and lower transparency.In this case,in order to effectively choose the stock of listed company which haves higher value and better development prospects,we need to fully consider the effect of investors' sentiment and behavior.Along with the network popularization,more and more investors spend a lot of time and energy to get market information from Internet stocks' bars.Bars not only play a more and more important role in the process of gaining information,but also have an impact on mood spread and trading behavior of investors.Investor's sentiment is the bridge connecting investors,fund companies and stock market.While investors post messages and express emotions as the main body of investment,they will not only have an effect on their own decisions,but also make other investors to create new cognitions,which influence the fund performance.Therefore,the management of investors' sentiment for fund companies is necessary.It's not only make fund companies understand the focus of investors and market timely,but also judge their behaviors according to their sentiment and make new investment strategies.During the author worked as an intern in A fund company,I learned about the company is committed to study the effect of investor sentiment on the market and the development of emotion management model.In this paper,under the premise that does not involve the use of confidential information,author reproduced the part of development of investors' emotion management model of A fund and joined the author's ideas and innovation based on the guidance of the predecessors' ideas and through the empirical research methods.We hope this research can provide some advices for investors in the practical operation,so as to promote the application of management of investors' sentiment in the Chinese stock market and then promote the prosperity and stability of the financial market in China.The building of investor sentiment index is to select variables from both direct and indirect indicators which can also reflect investors' sentiment,then establish investors' sentiment management model.We choice data from stock bar of Eastmoney.com which user coverage is wide and influence is big,and we use R software to test this model.The empirical results show that this model can guide to select stocks more effective and get better returns.Although this model has some limitations,it also can help investors to adjust their investment behaviors,so this model has certain applicability.