The Analysis Of The Efficiency Of Securities Funds In China

With the expansion of the size of Securities investment funds, different kinds of fund spring out, such as stock funds, bond funds, which provide investors with a wide range of investment options. However, with the growing number of fund products, how to assess and judge the efficiency of fund has also become one of the important issues. For a fair and correct evaluation of the Fund's efficiency and performance, it is important for investors, fund companies and regulators.First, this paper use factor analysis and data envelopment model (DEA), and select 40 samples of the Fund between January 2008 and June 2009 to conduct a study of efficiency of funds in China. This study shows that:funds as a whole industry, the resources utilization and operational efficiency is relatively low, there are different levels of resource waste. Meanwhile, the study also finds that between the Fund's efficiency and market index has a clear linkage, the vast majority of the Fund a can't get out differences with the market efficiency curve; Funds' internal resource allocation and capacity of management is not high, neither the Funds'optimal scale of operation; the efficiency of Index Securities Investment Funds, is significantly higher than other type funds; Through DEA model, this paper gives the optimal value of efficiency and the difference between the optimal value and real value, and explores the reasons of inefficiency of the funds, and ways to improve the efficiency. Finally, based on the whole study, a number of suggestions are put forward to improve the efficiency of China's Funds industry.