Chinese Securities Investment Fund Herd Behavior Research

The stock investment fund in China is still immature in many respects, which is a newly arisen market. At the same time, along with the QFII entering into our country's stock market, the behavior of the local investor and the risk characteristic of the stock market had been affected seriously. Therefore, with the tiny view in market construction theories and the behavior finance for foundation, investigate to the behavioral characteristic of the investments of the fund proceeds , not only corresponds the current trend of the financial theories, but also has the meaning of the important actuality guide.In our country, herd behavior always has the serious influence to stock market. But the problem whether the stock investment Funds have the herd behavior is not clear and accurate. Therefore, this paper analyses the problem.Based on the characteristics of the LSV model and the foundations that many economists used the LSV model to research their country's organization investors, this paper put forward creatively the value of HM in LSV model with how serious the organization investors' herd behavior is. The result of the research displays that the stock investment Fund including QFII disruptive herd behavior seriously. Express that in the three specific ways: tend to choose the same stocks, the stocks which the funds invested concentrated on a few industries, the frequency of the trades of our stock investment funds was multifarious. According to the behavioral fiance theory and the biases of the stock investment Fund, this paper put forward some investment suggestions for the stock investment fund.