The Relationship Between Fund Manager Competence Effect,Overconfidence And Fund Performance

China's economy has developed rapidly and China's capital market has matured now,the fund industry developed rapidly too.Actually fund manager is practitioners of managed funds and determines the fund's investment decisions,so it is very necessary to study the reflection on ability of fund managers in all aspects of factors.Different fund managers have different demographic characteristics,the size of the fund is different,which means that the fund manager's competence effect is also different,resulting in the emergence of different investment behavior and thus affecting the performance of the fund.Overconfidence comes from cognitive psychology,according to a vast amount of literatures on cognitive psychology,if the investor lost standard in judging cases,non rational behavior will be imitated,conduction in the market as a whole,and produce comprehensive and systematic deviation.In all these acts of deviation,the common one is that investors will stick to their beliefs and show overconfidence on their ability and the market.As the fund manager decides the judgment of investment,if you show overconfidence on their ability,then fund manager will be blindly optimistic,which will impact fund performance.Therefore,this article is based on the research of the relationship between the competence effect of fund managers and fund performance,and take fund manager's overconfidence into the relationship between the competence effect of fund managers and fund performance,in order to research fund manager's overconfidence and fund manager's competence effect on the fund performance and its inner mechanism.In this paper,we choose the open fund from 2011 to 2013 as a sample,using SPSS17.0statistical software to analyze the relationship between the fund manager's competence effect,overconfidence and the fund performance.Other factors that affect the fund performance in the process of model analysis are controlled.By summing the results of the regression,we come to the conclusions of this study:(1)The competence effect of fund managers and fund performance has significant positive correlation;(2)When the fund manager has overconfidence,the relationship between fund manager's competence effect and the fund performance is weakened.