Impact Of Green Portfolio Fund Investment Style Drift On Performance Of The Fund

Reform and opening up have enabled China’s total national economy to ascend to a new level.The real economy’s continual growth,such as manufacturing,has seen a steady rise in the quality of life for the populace,and their disposable income is also rising.No longer content with the original financial management models,such as bank deposits,people are discontent.To satisfy the majority of investors’ investment requirements,a growing number of financial management products are becoming available.Unlike the high risk of stock investment,open-end funds are more and more popular among investors because they can diversify the risk to a greater extent by investing in multiple stocks.As of January 2023,the number of funds in China has reached 10,607,of which 9,266 are open-end funds,and the net value has exceeded 23.6 trillion yuan.After the Ministry of Finance,the Central Bank and other seven national ministries and commissions jointly issued the "Guidance on Building a Green Financial System" and The 19th People’s Congress of the Communist Party of China put forward the policy of vigorously developing green finance,China’s green finance has seen a spurt of growth and gained remarkable results.China’s green securities investment funds started late,and there was a problem of low social attention in the early stage.Under the strong guidance and support of pertinent national policies,the green financial system has seen a swift expansion in recent years,with a notable rise in both the amount of funds and their net worth.Among the many types of open-end green funds,investors tend to choose the funds with corresponding investment styles based on their risk preferences,but in the real business activities there are some cases where the actual investment styles differ greatly from the investment styles promoted in their fund prospectuses.Therefore,the study of fund style drift in this paper has strong practical significance.This paper selects 27 representative open-end green-themed securities investment funds and divides them into bullish and bearish periods according to the market situation in the past 10 years.The study shows that green funds tend to drift in both bear and bull markets,and tend to drift toward a growth-oriented investment style,which is closely related to the support of national policies.This paper examines the net purchase and redemption rate of the fund as an adjusting variable in the research of fund performance,delves into the effect of the fund purchase and redemption on the fund investment style drift,and investigates the transmission path of investment style drift on fund performance,which makes the study more three-dimensional and perfect;finally,conclusions and related suggestions are drawn on the relationship between fund style drift phenomenon and fund performance according to the content of this paper,which provides a reference for the investment community to improve fund investment performance.Finally,based on the content of this paper,we draw conclusions and relevant recommendations on the relationship between fund style drift and fund performance,which provide some reference for the investment community to improve fund investment performance.