Research On The Effect Of Stock Fund Size On Its Performance

The development of China's fund industry has achieved more obvious achievements,among,the public fund with strong standardization and high transparency has added a lot of ink to the capital market.In recent years,the increasing fund size of the public fund can directly illustrate its development results.In addition to the expansion of the size of public funds in total,the operation of a single fund is also growing.According to the existing data on the market,the scale of a single fund product managed by individual fund management companies even reaches 100 billion yuan,which once attracted wide attention in the fund market and also reflected the persistence of fund management companies on the overall operation scale.So is the bigger the fund,the better the returns?Is it good for investors and managers to blindly pursue the expansion of fund size?Should the size of the fund be included in the evaluation index?These problems are worth thinking about in reality,and we hope to be able to dig out a certain rule.Simply put,the size of the fund may have the following effect on its performance.When the fund size is too small,the operating cost of the fund will rise.At the same time,the number of stocks that can be allocated is limited,and the effect of risk allocation is poor.Large redemption will have a great impact on the fund liquidity.Fund size is too large,for a fund manager,the operation will inevitably face some difficulty,because equity funds need to spread risk,and the raised funds allocation among different stocks,so the bigger funds need to select the number of stocks will be,the more in this case the stock selection ability of fund manager will face the test.In this way,the size of the fund is too big or too small.In order to explore the relationship between fund size and performance,this article selects between 2015 and 2019,the most can represent fund managers active investment ability,and can better reflect the fund investment effectiveness of open-end equity funds as sample,respectively select quarterly yield without risk adjustment index and after risk adjustment of excess yield index as the fund performance index,and join other control variables may be associated with fund performance,by the method of multiple regression analysis were studied.Finally,it is found that fund performance is positively correlated with fund size,and there are economies of scale in the selected sample funds.Finally,based on the above research results,this paper briefly analyzes the reasons and puts forward relevant Suggestions for the development of the market.It is hoped that the research results of this paper can provide some opinions for the majority of investors.