The Impact Of Fund Size On Fund Performance Of Open-end Funds

In recent years,with the introduction of a series of financial reform and financial industry opening-up policies,the asset management industry has also developed rapidly and improved day by day.Among them,the field of public funds is an important part that must be mentioned.Since the development of public funds in China for more than 20 years,with the continuous improvement of management system and the continuous progress of professional financial management level,the scale of asset management has also shown a blowout rise.With the continuous expansion of the scale,the long-term performance and professional investment value of public funds are highlighted,and the market demand is also growing.By 2020,the total scale of asset management of public funds in China has reached 19.89 trillion.This thesis attempts to explore the impact of the scale of public funds on their performance.Based on existing theories,this paper holds that fund size is an important factor affecting fund performance.In combination with the current situation of the fund industry,this paper selects the open-end securities investment fund in China’s existing public fund products from 2016 to 2020 as the basic sample range.After a series of screening and data processing,we finally get more than 40000 groups of data of 2610 open-end actively managed funds in five years and 20 quarters for empirical test.Based on panel data,the author makes OLS regression analysis on continuous explanatory variable fund return,sharp index and continuous explanatory variable fund scale respectively,establishes instrumental variables and lag regression model for endogenous test,and tests the robustness by changing the sample range and replacing explanatory variables.The final results show that fund size has a significant positive impact on fund performance.Group regression results show that the impact of fund size on the performance of hybrid funds is more significant than that of common stock funds.Large scale funds have a greater impact on performance than small-scale funds.The regression results of the lag period show that the expansion of the fund scale in the current period has a greater impact on the fund return of the lag period.Based on the theoretical analysis and empirical results of this paper,the author suggests that investors should try their best to choose funds with a certain scale for investment,with stable operation and good income.It is suggested that regulators should advocate investors to make long-term investment and value investment,and guide investors not to blindly follow suit through publicity and education.