A Study On The Performance Evaluation Of Partial-share Open-end Funds In China

With China becoming the second largest economy in the world,the people’s living standards have been greatly improved,the per capita income of residents has increased rapidly,and the People’s allocation of idle funds has greatly increased,thus has stimulated the financial market and the financial product enrichment and the consummation.In January 2015,the number of public funds in China was 1,977.In December 2019,the number of public funds increased to6,544.The market size and trading volume have both increased greatly.The subscription fund of Partial-share Open-end Fund mainly invests in the stock,which has the characteristic of high income,but there is no limit to the proportion of the Stock Fund investment,so it is welcomed and favored by the majority of investors.Facing the numerous partial-stock open-end funds on the market,how to choose the appropriate partial-stock open-end funds is the difficult problem and challenge that most investors face,therefore,the evaluation of fund performance has become the focus and difficulty of experts and scholars at home and abroad.In this paper,113 partial-stock open-end funds as the research object,first of all,the partialstock open-end fund performance evaluation of the theoretical basis for the performance evaluation of the fund to lay the foundation.Then it introduces the performance evaluation methods of single-factor fund based on CAPM model and multi-factor fund based on APT model,and on the basis of APT model,according to the influence of stock price on stock return,a fourfactor model is constructed by adding the stock price factor to Fama-French three-factor model.Then,using the data from October 2007 to August 2019,this paper empirically analyzes the fund performance using four-factor model and Fama-French three-factor model,the performance of the Fund is evaluated from stock selection ability,timing ability and investment style.Finally,some suggestions are put forward from the aspects of improving impact factors,fund companies and investors.The innovative exploration of this paper is mainly shown in: Based on the theoretical and empirical conclusion that the stock price factors affect the stock return in the existing literature,and on the basis of Fama-French three-factor model,the four-factor model with the stock price factor is developed to verify the effect of the stock price factor on the fund performance,it is found that partial-stock open-end funds tend to invest in small-cap stocks,growth stocks and high-priced stocks,and most funds do not have stock selection ability,but have significant timing ability.Compared With Fama-French three-factor model,the four-factor model with the stock price factor can explain the security market of our country more effectively and evaluate the fund performance more accurately.