Performance Evaluation Of Hybrid Funds

According to the statistics at the end of June 2019,there are 124 internal fund management companies with a total of 1.346 billion US dollars in public fund assets.The replacement of public funds in institutional investors is extraordinary.The stock market is still expected to be in the lowest 30% range ever.In such an estimated low range,as long as the overall economic trend and investor confidence increase,it is possible to set off a wave of great market.Therefore,it is particularly important to study the rise of hybrid public funds that are easy to use as investment vehicles to participate in stock market conditions in the current environment.This paper makes a comprehensive summary of the literature and theory of fund performance evaluation,and comprehensively discusses the relevant methods of fund performance evaluation.The latest Fama-French five-factor model and Chinese Fama-French factor model were used to attribute the performance of China's hybrid public fund,and the two models were compared.It is found that the Fama-French four-factor model with Chinese characteristics has a stronger ability to interpret the income of hybrid funds.The source of fund income is mainly investment small-cap growth stocks.Most funds are in the same direction as market returns but are not sensitive to market returns.Mixed funds Large-cap stocks with high EP ratios will reduce portfolio returns,while positive returns from investing in low-handed stocks are also a source of hybrid fund returns.This paper also studies the fund manager's ability to select stocks at the same time.Only about 11% of fund managers show timing ability,and this ability reflects a fixed pattern,that is,conservative fund managers generally continue to be conservative.And radical fund managers tend to be radical.This is reflected in the investment market is that the foundation has its own suitable market environment,in which the performance will be better than other funds.In addition,we have studied three hybrid funds that have maintained good timing ability in different periods.Whether they can maintain relevant performance in the fourth period,the results show that the past excellent timing ability does help to predict the future,but Funds that reflect this consistent ability account for only about 10%.The classification research results of mixed funds show that the probability of excess returns of blue-chip mixed funds is higher than that of growth-type funds,and the proportion of trend-type mixed funds that can reflect the timing ability on the model is only 4.76%.Balanced funds are more balanced in all aspects,and investing in stocks with low turnover rates is more likely to obtain excess returns.The conclusions of this paper are of great significance to the asset management industry,especially the fund companies.The Chinese version of the Fama-French four-factor model is used to attribute the fund portfolio,which is beneficial to more comprehensive and reasonable evaluation of portfolio income.For hybrid fund managers,most funds do not have the ability to make timing,the portfolio is tilted towards low turnover,and keeping a focus on small growth stocks is more conducive to excess returns.For A-share market investors,especially fund investors,due to the unstable performance of fund managers' timing ability,when investing in hybrid public funds,they should try to choose a balanced investment style,or they have always been excellent in timing performance.Fund manager to get a better return.However,considering that the fund managers who are able to make time should choose one,investors should not invest in fund managers with mixed styles when investing in hybrid funds.Instead,they can combine the market environment and select fund managers with consistent styles.When you are good,you choose a fund that is always radical,and when the market style goes down,you choose a conservative fund to get excess returns.