Change Of Size Of Open-end Fund

The most significant characteristic of open-end fund is that it has a free purchase and redemption mechanism. Investor's behavior of purchase and redemption results in the change of size of open-end fund. It is of great importance to study on the change of size of open-end fund and the factors that cause the change. For investors, the funds with steadily increasing size are more valuable than the funds with huge fluctuating size. For fund managers, the substantive redemption will cause a liquidity crisis while the substantive purchase will bring about difficulties to fund's asset allocation. For supervisors, the huge fluctuation of size of open-end fund usually implies the drastic fluctuation of the security market, which leads to disadvantages to the development of the market. Thus, research on such a problem can give inspiration to investors, fund managers and supervisors when they are trading, managing and making policies.This paper is based on China's equity open-end fund. In the...