Research On LOF Fund Redemption Anomaly Based On Disposal Effect

In recent years,open-ended funds have grown rapidly and become an irreplaceable investment tool in China’s securities market.However,there are some problems in performance incentive of open-ended funds in China,so the development of funds may encounter bottlenecks in the future.Fund performance incentive problems exist "redeemed vision" refers to the fund market,the open-end fund can’t play to the role of the "evolution",the garbage foundation continue to fill in the market,so that greatly increase the cost of screening for investors,the larger negative impact on fund market,therefore,the study of "redeemed vision" to promote the healthy development of open-ended funds in China is of great significance.This paper mainly takes LOF fund as the research object.The background of this paper is based on the following three points: 1.China’s stock market fluctuates greatly.Second,behavioral finance has attracted much attention from academic circles in recent years.The study of behavioral finance can not only explain many unreasonable phenomena,but also provide a basis for solving problems.3.To break through the development bottleneck of fund market,a large number of theoretical researches are needed as the support.However,there is a relatively lack of academic research on LOF fund at present.In this paper,the research method of combining theoretical research with practical research is adopted.In the third chapter,the thesis takes redemption anomaly as the problem orientation and obtains the proposition of "redemption anomaly" in the LOF fund market through the basic data.In order to analyze the causes of "abnormal redemption",the fourth chapter starts from the theory of irrational investment behavior--disposal effect and combines traditional finance to establish the behavioral decision-making mechanism of investors and puts forward the empirical hypothesis.The article fifth chapter is the empirical part of this article,the empirical selection 1 quarter of 2013 to 2018 1 quarter 125 meet the requirements of slant type of 21 LOF fund quarterly data as sample,through the establishment of a reasonable empirical model to do regression analysis,found that redemptive vision clear LOF fund market in China,according to the division of fund performance classification,it is concluded that those who can maintain the stability of performance winner the conclusion of the fund does not exist a vision.In order to further study,this paper takes the disposal effect theory in behavioral finance theory as the entry point for further study and finds that the disposal effect obviously exists in those general funds and loser funds with volatile performance,which makes the entire LOF fund market have redemption anomalies.This article through to the disposal effect of periodic inspection,found in the "bull market",investors become "passive rationality",disposition effect does not exist,but in a "bear market",investors become as "totally irrational",all funds are the disposal effect,redemptive vision is more serious,investors will accelerate the collapse of the stock market panic.In order to fundamentally solve the abnormal situation of fund redemption,the sixth chapter of this paper intends to propose targeted fund design from the perspective of information asymmetry to reduce the irrational redemption of fund investors,so as to promote the stable and healthy development of China’s LOF fund market.