Study On The Influence Of Mutual Fund Flows On The Fund Performance In China

In recent years,open-end funds as a benefit-sharing and risk sharing modern financial instruments in the capital markets has been develop rapidly,when individual investors choose fund,because of asymmetric information,they are often unable to identify fund with super investment ability.In reality,due to a lack of information,investors are disadvantaged,the historical performance of the fund is thought to play a strong signal role in guiding the flow of funds.For this selection criterion of whether it is truly rational investor can bring their excess earnings,existing studies are based on an open-end fund flow as a proxy for investor behavior,to analyze the performance of the fund investor behavior affected.The current findings are divided into "smart money effect"-the purchase behavior of investors can bring excess returns and "dumb money effect" investor's purchase and redemption will damage investor's behavior in the long run interests.Based on the Chinese fund market,focusing on the investment behavior of the open-end fund performance impact and investors the ability to select funds.Funds flow used as a proxy for investor behavior,multi-angle analysis of the impact from the behavior of investors in the subscription and redemption of fund performance generated examined whether investors have the ability to select the best funds.In a different market environment,the behavior of investors and fund performance would have different effects,this article will be divided into the bull market,bear market,in shock three environments,were investigated fund net capital flows,inflow and outflow how effect on fund performance.The main work of this paper is as follows:(1)In a different market environment,the market impact of the Fund inspection fund flow to fund performance.The market environment is divided into the bull market,bear market,in shock three cases,the effects of open-end funds flow to fund performance.Further subscription and redemption behavior of investors will be considered separately,discuss the impact of investor behavior on fund performance.The results show that the presence of China's fund market in the clear "stupid money effect",that is an open-end fund flow have a negative impact on fund performance,this effect is more significant in the bull market.And greater damage to investor redemption fund performance.(2)The open-end funds and closed-end funds are compared,analyzed the impact of both open-end fund flow performance differences.Select the open-end funds and closed-end investment fund within the same fund family style closest to study open-end fund flow would affect their performance.The results show that open-end fund flow caused by closed-end fund underperformed its performance.That is,the subscription and redemption behavior of investors to make an open-end fund managers deviated from the optimal investment strategy to the detriment of the performance of open-end fund.(3)We analyze the impact of the Fund within the family star fund spillover effects on the entire fund family performance.Previous studies demonstrated Stars Foundation to other funds within the family bring in capital inflows,resulting in spillover effects.Since then the management fees charged by the current fund assets linked to the country only to management,so that the fund company has deliberately create motivation Star Funds.This behavior will harm the interests of investors.This article analyzes the Fund's non-Star Funds flow impact on the performance of the entire fund family,the results show that the star fund of fund flow will damage the non-performance of the whole family.Description in the market,fund companies focus only on the expansion of assets under management,does not attach importance to safeguard the interests of investors.