The Development Of Chinese Mutual Fund And The Empirical Research Of Its Performance

The industrial transformation and upgrading in China needs more support from the capital market,in which the institutional investors are playing a more important role.The sound development of Chinese public fund,the main institutional investor on the secondary market,is closely related to the construction of the whole capital market.In the paper,I give a review of the history of American institutional investors and the mutual fund.The causes for the mature development of Amercan mutual fund are analysized.It's not only for the external causes such as high propotion of fund products in American household's asset allocation and the reform of pension system,but also for the internal causes like good performance of American mutual fund.Then I give a review of the development of Chinese public fund and lay emphasis on the bottlenecks faced with the public fund industry.In my opinion,the main problem about public fund is how to advance its performance,so I launch the empirical study on the performance of Chinese mutual fund.In one part of the empirical study,we know the stock public funds are performing poorly relatively.In another part,the results of empirical analysis on the factors affecting the performance tell us that not only the market index and the investors' purchasing behavior,but also the fund managers' experience have an effect on the fund performance.Finally,on the basis of above,I proposed some suggestions beneficial to the development of Chinese public fund.