| China began to explore and practice investment funds in the 1990s. Through more than 10 years development, the market of investment funds has grown from nothing and expanded from small to big. The number and size of the fund companies, the number of fund investors, the quality and size of investment funds'products have made the considerable progress during the last ten years. As one of the most important institutional investors in the capital market, the academic circles have never stopped researching the investment funds.In order to make our research complete and meticulous, we just focus on investment style of investment funds. Investment style should be the "value" of the fund. From investment style, we can see the funds' appetite, the modes, principles and ideas of portfolio management and the target of operating. It's not the scattered decisions on which stock should be chosen. Previous researches have seldom focused on investment styles of funds and most of them which studied investment styles focused on the recognition methods of investment styles, empirical studies of style recognition, empirical researches of the drift of styles and empirical researches of the relationship between investment styles and performance of funds. In our study, we will combine the style with the characteristics of investment companies and their boards, the characteristics of funds' managers and funds' performance.The first question in our research is the study on persistence of investment funds'styles. In this part, we studied the deviation of nominal investment styles and real investment styles and the persistence of investment styles using regression analysis. The second question in this paper is the analysis of influencing factors on the persistence of real investment styles of funds using regression analysis. The third question is the analysis of the relationship between funds'nominal investment styles and funds'managers'characteristics using logic model. The relationship between them reflects the nomination rules followed by the fund companies. The fourth question is the analysis of the relationship between funds'real investment styles and funds'managers'characteristics using logic model. The relationship between them reflects the real investment favor of funds'managers. Furthermore, through comparing the results of the third question and the fourth question, we could find out the differences between the "fact", the real investment favor of funds' managers, and the "ideal", the nomination rules followed by the fund companies. The fifth question is comparative studies of funds' performances. The funds are divided by the investment styles, the characteristics of funds'managers, the size of fund companies and the size of funds.Through researching we are arriving at the following conclusions:we found out that the real investment styles of open-ended funds really deviated from the nominal investment styles of open-ended funds. In the short term (6 or 12 months), the real investment styles of open-ended funds showed strong persistence in large-cap or small-cap style, growth or value style and momentum or reverse style. The shorter the period studied, the stronger the persistence of funds' style. In a little longer term (24 months), the real investment styles of open-ended funds didn't show strong persistence in fund style. The persistence of close-ended funds'style is stronger than that of close-ended funds' in 6 months,12 months and 24 months. And the persistence of close-ended funds' style became weaker when the period went long. The influencing factors on the persistence of real investment styles of funds included change of the fund managers, change of the size of funds, change of the stock market and the past performance of funds.We also found that fund companies were inclined to nominate female manager for the funds of value style. And in face, female managers didn't show their preference for prudent investment style significantly. Fund companies were also inclined to nominate managers with a longer career for the funds of value style. Meanwhile, the managers with a longer career were inclined to prudent investment style. Fund companies didn't show their significant preference for managers graduated from prestigious universities during nomination for different styles of funds. In fact, the fund managers graduated from prestigious universities preferred prudent investment styles. Fund companies were inclined to nominate managers with overseas study experiences. In fact, the fund managers with overseas study experiences didn't show their significant preference for fund investment style. Fund companies were inclined to nominate managers with science and engineering background for funds of growth style. But in fact, the fund managers with science and engineering background didn't have their favor in investment style. Fund companies were inclined to nominate managers with economics background for the funds of value style, while, the managers with economics background preferred the prudent style.Compared with the small fund companies, the large fund companies were inclined to choose female fund managers. The larger fund companies preferred fund managers graduated from prestigious universities and with overseas study experiences. The stronger the dependence of the board of the fund companies is, the more the managers graduated from prestigious universities were needed. The funds managed by more than two managers were inclined to choose the fund managers with economics background.The investors who purchased funds of the large fund companies would get more reward than those who purchased funds of the small fund companies in 2 and 3 years. If the investors would like to hold the funds longer, then, it would be better to buy the products of large fund companies. Although the return of investing funds were less than investing the bull stock market, the lost of investing funds were less than investing the bear stock market. Compared with investing the stocks directly, investing funds was sounder. Moreover, in average, the return got from funds between 2005 and 2008 were much more than that got from the stock market. Therefore, the investors would get more return if they held funds for a long time. In a longer period (3 years), the performance of the large funds was better than that of the small funds. Moreover, the performance of the large and small funds was better than that of the overall stock market. In a short period (1 year), the performance of the large funds was almost the same as the performance of the small funds.The performance of female and male fund managers were not significant different. Graduation from the prestigious universities had no relationship with the performance of funds. The performance of the fund managers without overseas study experiences was better than that of those with overseas study experiences. The funds with managers of both science and engineering background and economics background performed better. Compared with the managers with a shorter career and young age, the funds with managers with a longer career and the funds with the older managers performed better, but the differences are not significant.In a long period (3 years), the differences among the funds with different investment styles were not so much. In a short period (1 year or 2 year), the differences among the funds with different investment styles were not so much either. These conclusions meant that investors holding the funds with growth style would not get more return than those holding the funds with value style. Meanwhile, these conclusions meant that many funds did not obey their given investment styles.Above all, we advised the fund companies, fund managers and fund industry from the aspects of the persistence of investment style, the stability of fund managers and psychology set-ups and risk education.
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