The Influence Of Performance Ranking On Fund Investment Style Drift

China’s fund industry has experienced rapid development in the past 20 years,but there are still some deficiencies compared with foreign financial developed countries.Fund investors in the face of numerous products when choosing fund performance ranking as one of the most high-profile index fund investors when choosing fund,and for fund managers,the results also pay levels,and no doubt affected the fund manager of employment,and potential impact to the fund manager’s investment behavior.Therefore,overall performance ranking will affect the management and operation of the fund from the two aspects of fund investors and fund managers.This paper selects 2015-2019 as the observation period,and takes the annual Listed Open-end Equity Funds as the research sample,divides the year into the first half and the second half,uses the strong sharp model to identify the investment style of the funds in the observation period,and obtains the fund style drift by comparing the asset coefficient of each style and the calculated value of SDS in the second half of the year,and on this basis,makes regression analysis This paper analyzes the influence of ranking on the drift of fund investment style,combined with the market situation,salary incentive and professional reputation.Yes,it is found that in the bull market,the effect of salary incentive is greater than professional reputation,which makes fund managers with lower performance in the first half of the year actively adjust their portfolios and strive for better annual ranking,while the degree of style drift in the second half of the year is greater than that of funds with higher performance.In the bear market,the impact of professional reputation is greater than salary incentive,which makes fund managers with lower performance in the first half of the year worry about whether they can continue to work in the future,and the degree of style drift in the second half of the year is less than that of fund managers with higher performance.In addition,by dividing the sample funds of each year into two equal parts according to their performance in the first half of the year,we found that under different market conditions,there is an obvious asymmetry between their performance ranking and the degree of fund style drift.In terms of fund investment style adjustment,the first half of the performance of the top and the back of the fund are basically showing a certain degree of convergence.