Research On The Relationship Between Investment Style And Risk Return Of Open-end Found

China's rapid economic growth over the past three decades has prompted a growing number of high net worth people and a gradual climb in investment demand.At the same time,the capital market is also constantly developing.Since the establishment of the firsttwo closed-end funds in 1998,the development of the funds has experienced nearly two decades,both in terms of scale and type have been very rapid development.For fund investors,the need to find suitable products to make their own income and risk balance,the process of selecting the Fund is essentially the process of discriminating the fund style.Fund investment style accordingto different standards have different classification,Sharpe that the fund manager investment management with a specific way or investment objectives belong to the investment style category.Accordingto the style of Morningstar investment Style box,the paper identifies the fund style from the purpo se of fund investme nt and two dimensions of fund investment scale,and adopts Sharpe model when recognizing the fund style.In the actual style of identification found that most of the sample fund's actual style and nominal style that fund recruitment book implied by the style is inconsistent,and found that the balance of funds relatively tend to maintain consistency,the market is in a stable phase of the funds are also more inclined to maintain style consistent,economic downturn,various types of funds deviate from the benchmark investment style index is serious,generally fleeingthe market.The drift of the fund can be obtained in different stages,and the result shows that the fund style drift is serious regardless of the angle of the style.The significance of fund style identification lies in revealing the phenomenon of fund style inconsistency and style drift.For investors,they are more concerned about the relationship between style inconsistencies,style drift and fund performance.This paper further explores the relationship between style drift and performance from dynamic and static two points.Static analysis using descriptive statistics,the results show that the most frequent drift of the fund performance is generally relatively poor,drift similar to the stabi lity of the Fund's own returns.The dynamic analysis creatively uses the vector autoregressive model to analyze the sample fund,and returns the structural driftcoefficient and the risk income index.The results showthat the sudden improvement of fund performance will prompt the next period of the fund to maintain its own style,but this impact has short-term and rebound effects,that is,the next period after the end of the fund investment style will be a rapid and substantial drift;Investment style suddenly drift when the current performance of the Fund will not change,the next period the performance of the Fund has improved,but the impact of the rapid weakening,that is,investment style drift on the performance of the Fund also has a short-term effect;Fund performance can promote the performance of the Fund to further improve rapidly,the current style of drift will prompt the next period of style to maintain the style of the period,but the timeliness of these two effects are very short.