Research On Liquidity Risk Of Open-end Fund

Due to the government's policy, the security investing funds in China has made great progress, especially the open-end funds. As to the amounts of the open-end funds, at the end of year 2003 there was only 56 open-end funds, but the number had reached to 147 by end of 2005. As to the scale, it has been amounted to 389.4 billion from the 120 billion at the same time.There is much research space for the liquidity risk of the open-end funds because of the so rapid development. With the large-scale launching of the open-end funds, the redemption of the investors takes on disciplinary change. It is very important to grasp the law of the investor' redemption for controlling the liquidity risk of open-end funds.The author puts the emphases on the redemption risk of the open-end funds, does research on the relationships between redemption and the achievement of the open funds, the redemption and the scale of the company, the redemption and the melon-cutting, the redemption and the type of the funds and so on. The author has made the regression model on the relationships mentioned above in order to estimate their relativities in the quantitative view. The author hopes that the research will provide some help to the managers of the open funds for guarding against the redemption risk.