Research On Investment Strategies Of The Huaxia Overall Market’s Selected Hybrid Fund

With the rapid development of China’s securities market,the scale of the fund industry is expanding,and a number of outstanding public security investment funds have emerged.At present,domestic and foreign scholars mainly use large sample data to carry out empirical research on the investment strategy and performance of public security investment funds,and seldom do in-depth research on the investment strategy and effect of single fund.This paper studies the investment strategy of Huaxia overall market’s selected hybrid fund,which has the first historical performance in the public securities investment fund industry,and uses empirical method to analyze the practice effect of its investment strategy,in order to provide reference for institutional investors and individual investors in choosing investment strategy.This paper makes a deep study of the investment strategy of the fund from two perspectives of stock selection strategy and timing strategy.The research finds that the top-down industry selection strategy and bottom-up individual stock selection strategy are the main ways of the stock selection strategy of Huaxia overall market’s selected hybrid fund.In the timing strategy,the fund adopts the strategy of camera selection,which is mainly reflected in the flexible stock position management and the combination of momentum and reversal strategy.On this basis,the paper uses TM-FF3 model and expansion model to analyze the actual effect of the stock selection strategy and timing strategy of Huaxia overall market’s selected hybrid fund,and uses four single-factor models to analyze the overall performance of the fund’s investment strategy.The results show that the selected hybrid funds in China stock market show significant stock selection ability on the basis of daily and quarterly data,but have no timing ability,which indicates that the stock selection strategy is effective and the timing strategy is ineffective.In addition,the regression results based on quarterly data show that there is a significant negative correlation between industry concentration and stock selection concentration and fund performance,which indicates that the relatively decentralized stock selection strategy can improve fund performance;while the relationship between stock position and turnover rate and fund performance is not significant,which indicates that the timing strategy of the fund does not have a significant impact on fund performance,which has no timing ability with the fund.The results of force are corroborated.The results of four single-factor models based on monthly data show that Huaxia overall market’s selected hybrid fund has achieved positive risk-adjusted returns for most of the time and have overcome performance benchmarks and market returns,which indicates that the overall investment strategy of the fund has achieved good practical results.