A Study On The Relationship Between Fund Industry Allocation Ability And Fund Performance

The process of economic operation is usually accompanied by cyclical changes,and various industries in the market also show different development states.The phenomenon of "general rising and general falling" happens from time to time among different industries.Therefore,in the investment activities,the choice of industry is particularly important.When investing in the fund,whether the fund manager can invest in the high-quality industry among many industries and whether the fund can obtain excess returns has become an important part of the research on the investment management ability of the fund manager.However,due to the limitation of incomplete disclosure of fund position information,domestic research on fund managers' industry allocation ability is unable to accurately estimate the industry allocation weight.In the empirical research,some scholars use the low-frequency secondary data disclosed in semi-annual reports and annual reports,and some use the data of the top ten large-position stocks of unitization.These data have a large error with the actual data,and the conclusion obtained by using these data may not be convincing enough.In this paper,using holdings completion method,estimated total holdings of funds first,and then adopt more suits for the evaluation of investment of fund industry all industry classification standard of classification and industry weight data,and then build industry concentration index of ICI,and implements active investment management strategy for China open-end equity funds for empirical research.The results of panel data regression show that there is a positive correlation between the industry concentration index ICI and the fund performance,that is,the more concentrated the industry in which the fund is invested,the better the fund performance will be.Thus,it can be concluded that the fund manager has the corresponding ability to select the industry.