Research On Redemption Behavior Of Institutional Investors On Securities Investment Funds

The advent of the institutionalized era has promoted the development of China's securities market,at the same time brought instability.In recent years,funds have been repeatedly redeemed by institutional investors,which exacerbated the market turmoil.In the context of the gradual expansion of the influence of institutional investors,the research on redemption behavior of institutional investors on securities investment funds has important theoretical value and practical significance.Combining theory with empirical analysis,this paper makes an in-depth analysis of the influencing factors and internal mechanism of institutional investors' redemption on securities investment funds and its influence on the investment behavior of securities investment funds.Theoretical research shows that the macroeconomic environment,policies,laws and regulations,market conditions,liquidity constraints,the fund's own factors have a certain impact on institutional investors' redemption on securities investment funds.The study of the internal mechanism of institutional investors' redemption shows that the process of institutional investors' redemption on securities investment funds is essentially the process of game between different institutional investors,which leads to the decision-making preferences,herd behavior and arbitrage motives in the redemption process.Further analysis suggests that institutional investors tend to redeem profitable securities investment funds,avoid redemption of loss funds,and have intrinsic psychological and external conditions that induce herd behavior.The redemption behavior of institutional investors will affect the investment behavior of securities investment fund from three aspects: asset allocation,liquidity management and operation time.In the case of insufficient liquidity,the fund managers have to respond to the redemption of institutional investors by cashing out assets.The empirical results show that the fund's own rate of return,market rate of return and fund size are the main factors that affect the investors' redemption on securities investment funds,and fund managers' investment ability and fund holding concentration are the secondary factor.Among them,the fund yield and institutional investors net redemption rate showed a positive correlation,which believes that institutional investors will redeem the securities investment fund to achieve their own benefits based on “pocket for security”,that is,the disposition effect,which is consistent with the characteristics of the theory of prospect.Under the influence of these factors,the paper further analyzes the redemption behavior of institutional investors from the perspective of herding behavior.It is found that when the institutional investors' net redemption rate of the weighted average market is at different levels,the degree of deviation between net redemption rate and market weighted net redemption rate is in dynamic change.Moreover,there is a critical value for the change in the net redemption rate of the institutional investors' weighted market,and the degree of deviation on both sides is significantly different.Therefore,it is considered that the herding behavior of institutional investors to redeem securities investment funds is dynamic,not existing in each time.