Empirical Analysis On Fund Performance Persistence

With the development of China's capital market,investment fund as an important investment tool has increasingly brought to the attention of the investors.When buying a fund,investors must clear their appetite for risk,investment demand and the current financial market environment to choose his own fund types firstly.What's the investors' concern When choosing specific fund.This article stands in the perspective of investors,studying two aspects: funds performance evaluation and performance persistence.The single factor and multi-factor evaluating model are used to evaluate fund performance.It turned out that most of the funds can not beyond market performance and most of the funds do not have stock selection and timing ability.Only a few fund has the ability.With the aspect of fund performance persistence,four methods are adopted : cross-sectional regression,cross-tabulation,ways of grouping,scan statistics.Examine the sustainability from the whole and the part fund respectively.The empirical results show that the whole funds performance persistence does not exist.But,part of the individual funds exist.Through the method of scan statistics,give part of the individual funds' performance persistence measurement.the sustainability of winning is weaker than losing.