The Empirical Study On The Performance Of Stock Funds In China Based On Carhart Four-Factor Model

Since the beginning of the 21 st century,China's economy has developed rapidly,and China's securities market has made remarkable achievements in the wave of economic development.In the securities market,the size of securities investment funds,which are the backbone of institutional investors,is also expanding,and the variety is increasing.It has gradually become an investment method recognized by investors.The stock fund has won the recognition of investors in the fiercely competitive securities market by virtue of its good liquidity,flexible investment mode and high profit rate,and has become a popular investment product in securities investment funds.As more and more investors invest in China's openend equity funds,accurate evaluation of fund performance and finding a comprehensive and effective performance evaluation method are very important for investors,fund management companies and regulators.In the analysis of the investment performance of open-end equity funds,this paper adopts the empirical analysis method.The selected model is the Carhart four-factor model.Compared with other fund performance analysis models,the advantage of this model is that it can not only analyze the performance of fund investment.Inferior,it is also possible to analyze the factors affecting the investment performance of the fund,so as to judge the fund's investment style.On the basis of previous studies,this paper innovates the selection of sample fund data,considers the impact of fund construction period on empirical analysis,and eliminates the problem of inaccurate rate of return due to insufficient asset allocation at the beginning of the fund establishment,and Finally,the empirical analysis results are compared with the evaluation results of Morningstar Fund,and the accuracy of the empirical results is further tested.Obtained through empirical analysis of this articles,The Carhart four-factor model has a good fit to both the overall sample fund data and the individual sample fund data.The openend equity fund in China generally defeated the market during the research period and achieved excess returns.Most individual funds perform well,fund managers' investment behavior can obtain stable excess returns,and a small number of individual funds can obtain excess returns,but the returns are not very stable.This result is very strong with Morningstar Fund's rating results for sample funds.Consistency shows that the four-factor model is applicable to the analysis of the investment performance of China's open-end equity funds,and also shows that open-end equity funds are a good investment choice for investors;for the interpretation of fund performance sources,The market factor has the strongest explanatory power,the value factor has a weaker explanatory power,and the other two factors have a moderate explanatory ability.By comparing the results of the performance source analysis with the evaluation results of Morningstar Fund,the investment style of the sample fund and the Morningstar Fund Network are basically consistent.Basic evaluation results Consistently,this is a good illustration of the Carhart four-factor model with certain accuracy for the source analysis of China's open-end equity fund investment performance.