Research On The Impact Factors Of Fund Style Drift

In recent years,public funds have grown rapidly and funds are favored by more and more investors.Fund style is the style of fund managers in selecting investment objects and constructing investment portfolios,which is an important basis for investors to invest in funds.However,the phenomenon of fund style drift exists widely in domestic and international capital markets,and the fund deviates from the initial agreed investment objectives and style in actual operation,which makes the fund investors bear the style beyond their expectations and may bring a lot of losses to the fund investors,and also damages the credibility of the fund company,which is not conducive to the development of the whole capital market.With the development and popularity of the Internet in China,the dissemination of information is no longer limited to traditional media,and the threshold for investors to obtain information has been significantly reduced,but investors’ attention is still limited by their own energy and time and other factors.As an important branch of behavioral finance,investor attention has attracted discussions among a wide range of scholars.However,fewer scholars have studied the relationship between investor attention and fund style drift.Therefore,this paper introduces fund investor attention into the study of the factors influencing fund style drift,broadening the research perspective in the related field.The introductory section of this paper introduces the research background,significance,innovation and shortcomings of the paper.After the introduction,this paper reviews the existing theories and literature related to fund style drift and investor attention,and proposes the hypothesis that fund investor attention positively affects the degree of fund style drift based on previous studies.In addition,this paper also selects the proportion of fund institutional investors as a moderating variable to explore the moderating effect of fund holder structure.This paper selects 196 open-end equity funds as the study sample,and the study interval is from January 1,2018 to December 31,2022,and quantifies the degree of fund style drift using the SDS indicator in Sharpe’s model,and then builds a fixedeffects model to verify the positive relationship between investor attention and fund style drift.The fund exchange rate is then used to verify the influence mechanism between the two,the higher the fund investors’ attention,the more frequent the investors’ redemption behavior will be,causing the fluctuation of fund cash flow,and the fund manager needs to adjust the fund holding portfolio accordingly in order to meet the liquidity demand,thus exacerbating the fund style drift phenomenon.Then this paper adds the moderating variables of institutional investors and cross multipliers of fund investors in the regression model to test the moderating effect,and find that the higher the proportion of institutional investors,the smaller the influence of investor attention on fund style drift,which may be due to the more rational and stronger monitoring effect of institutional investors’redemption behavior.Finally,this paper combines the findings of the study with suggestions for fund investors and relevant regulators,such as suggesting investors to establish a long-term and rational investment concept and promoting the optimization of the fund market’s holder structure,which has certain practical significance.