Investment Potential Of Closed-end Funds In Our Country

Under the guidance policies of "unconventional development of institutional investors", after nine years of development the Chinese securities investment fund, at present, has become one of the important institutional investors in Chinese stock market. With the stock market in June 2005 rebound, stock market has entered a "big bull" era. More and more people began to pay attention to the Chinese market and more and more people have begun to enter the stock market. Due to the different risk preferences, some risk-averse investors choose the closed-end funds to invest bull market share in the fruits. As a result, investors are increasingly concerned with closed-end funds and the study of closed-end funds for ordinary investors has become a focus of concern. But China's closed-end funds for the operation of the investment analysis and evaluation aren't corresponding imperfect. It has been mainly performance-oriented single evaluation. This evaluation method is very defects. It led to investors and fund managers created a one-sided pursuit of investment returns while ignoring the risk of investment mistakes investment concepts, thereby hampering the closed fund industry's healthy development. Therefore, how to objectively and accurately, comprehensive evaluation closed-end funds have become fund industry and the theoretical issues of general concern and a basic research project.The potential assessment of Closed-end fund is both a theoretical and practical study. Closed-end fund can be attributed to the investment potential of the fund management company's assets efficient portfolio. And it also can be attributed to the investment potential fund manager's insight. Only high-efficiency investment funds can give investors a huge wealth and be able to attract more funds. So, this paper reviewing the theory and according to scientific, comprehensiveness, objectivity, feasibility and comparability principle and by drawing on performance evaluation system and management capacity assessment system and the combination of closed-end fund industry characteristics, designing for the first floor of the basic closed-end fund, Closed-end fund investment performance status, closed-end fund management capability. On this basis, the use of cluster analysis and principal components analysis. Through the first cluster of ideas after ordering the construction of a closed-end funds to evaluate investment potential theoretical system. Finally, the use of the existing system of 41 closed-end funds with the potential for investment evaluation, as well as the results of an evaluation of the qualitative and quantitative test, reached an objective evaluation findings, the certification system, the developers of the scientific nature, practicality and workability, and fully embodies the advantages of the model and broad application prospects.