Research On Splitting Behavior Of Open-end Funds In China

The fund split is an initiative to reduce the net value of the fund unit actively implemented by the fund manager on the basis of keeping the total value of the investor's assets unchanged.The general theory holds that fund managers' fund splitting is mainly driven by interests.By reducing the net value of fund units and attracting net inflows of funds,the fund scale is expanded to increase management fee income.However,as the main participant of the fund contract,the fund manager's initiative to implement the fund splitting behavior will have a direct impact on investors,in addition to affecting its own interests.For fund investors,the specific reflection of their investment decisions is the purchase and redemption of the fund,that is,the fund split has an impact on the net inflow of funds,and the flow of funds for purchase and redemption directly determines the size of the open fund.And further affect the future performance of the fund.Under the framework of the relationship between the net inflow of funds and the future performance of the fund,this paper constructs an impact model of fund splitting on fund managers and investors,and introduces different interests driven and irrational in the principal-agent relationship of securities investment funds.The behavioral bias of investors and the relevant factors that managers cater to,to study the motives of fund splitting behavior,and to distinguish between institutional investors and individual investors in the market reaction to splitting behavior.The research results show that the fund split has a positive positive impact on the fund's future net capital flow.The split has greatly increased the fund's current net capital inflow;however,the future performance of the split fund is not superior to the unsplit fund,and even There is a certain degree of performance reversal,and fund splitting does not have any improvement effect on investor income;compared with institutional investors,individual investors' irrational behavior is more serious,and they are often more enthusiastic about applying for split funds.This proves that splitting is a kind of marketing means that rational fund managers welcome and use investors' irrational preferences for their own interests,which corresponds to the behavioral bias of irrational investors.For investors,this behavior can not only produce excessive returns,but may even cause damage to theinterests.Fund splitting is a kind of hidden interest infringement to a certain extent,which deserves to be concerned and take corresponding regulatory measures.