An Empirical Study On The Relationship Between Funds Expenses And Performance In China

At present,China's fund market is in a stage of rapid development,and open-end funds are gradually taking the lead.The issue of the cost of open-end funds has also been an important issue in fund product design and fund management.Fund fees and performance are related,and domestic and foreign scholars have drawn different conclusions on the relationship between fund fees and performance.Chinese scholars' research on the relationship between fund fees and performance is in the stage of continuous exploration.Based on the current situation of fund fees in China,it is also beneficial to the development of the fund industry and investor decision-making.This paper combines domestic and foreign literature and reviews related theories,aiming to analyze the relationship between fund operating expenses and performance of open-end funds in China.In addition,the sample of this paper covers a relatively complete stock market cycle.The whole sample is divided into a bull market stage and a bear market stage,and the relationship between fund expenses and performance under different stock market cycles is analyzed.At the same time,based on the analysis of predecessors,the investor structure factor is introduced as an interaction term to further analyze the influence of investor structure on the relationship between the two stock markets.The results show that there is a negative correlation between fund expenses and fund performance;under both bull and bear market,the cost of the is negatively correlated with the performance,but the performance of the bull market has twice the impact on the cost than the bear market;After added the proportional interaction item,in the whole sample,the investor structure factor has a positive effect on the relationship between the two.The bear market sample also has a promotion effect,but the bull market is weakening,which also proves that the stock market cycle will affect the relationship between fund expenses and fund performance.This paper based on the current situation of China's fund expenses.In addition,the development of China's securities market is relatively immature,and the stock market is in a stage of flux.Exploring the relationship between fund expenses and performance under different stock market conditions is conducive to refining the fund management company's cost design and investor's decision-making.In addition,further investigation into the structural factors of investors will facilitate the regulation and supervision of the fund industry.