A Study On The Relationship Between Investor Attention And The Performance Of Open-end Funds

With the development of China’s financial market and the release of residents’ wealth allocation demand,open-end funds have been favored by investors because of their "benefit-sharing and risk-sharing" characteristics,and have achieved rapid development.In addition,the emergence of the Internet,on the one hand,has given birth to a new way of Internet financial management,on the other hand,investors have more diversified access to information,investors from passive recipients of information to active dissemination of information.However,the attention of ordinary investors is easily disturbed by information and then the ability to process information is reduced,and more often rely on network hotspots and personal interests to make investment decisions,accompanied by a series of investment bias behavior,which will lead to asset price fluctuations.Therefore,exploring the relationship between investors’ attention and the performance of open-end funds is not only helpful to supplement the application of behavioral finance theory in the fund market,but also provide a series of suggestions for investors to establish correct investment ideas and optimize their own investment behavior.This paper takes 53 stock and mixed partial stock funds established before 2011 as the research object,first,through the establishment of panel fixed effect model to study the impact of fund performance on investors’ attention,and to explore the impact of fund performance in different ways on the results;secondly,through the establishment of chain multiple intermediary effect model to explore and analyze the direct effect and intermediary effect of investor attention on fund performance.Finally,the causality test is used to study the relationship between investor attention and fund performance,and the interaction mechanism between the two is further combed.The results show that there is a phenomenon of investors chasing performance in the open-end fund market of our country,and the performance fund attracts the attention of investors,and the concern of investors in our country is actually a kind of limited attention,that is,compared with the professional fund performance measurement index,the improvement of the original return of the fund can attract the attention of investors more.Investors pay attention to the direct effect and intermediary effect on fund performance and are positive.Investors pay attention to the negative intermediary effect through the impact of fund flow,and the intermediary effect through the impact on fund portfolio is positive and dominant.Investors pay attention to the fund performance in the short term there is a sustained positive relationship between the impact,but this relationship will be affected by the size of the fund and the stock market volatility cycle will not last for a long time,and eventually both will fluctuate in a reasonable range.