China's Securities Investment Fund Performance Evaluation Studies

The security market of China have got great development in the past 15 years, it have gradually grown into maturation from infantilism. The growth of security market makes the security investment funds a better circumstance to develop. After several years'development, by the end of Jun. 2005, there are 54 pieces of closed-funds and 119 pieces of opened-funds founded, and the total scale of funds has reached more than 429 billion Yuan. It is concluded that the security investment funds have been one of the important parts of the security market in China, because it plays a key role stabilizing the security market, enlarging the investment room, improving the investor's structure, and promoting the activity of the market. Therefore, more and more experts pay attention to the operation and characteristics of the funds, trying to learn the performance evaluation of funds and the infection factors. Furthermore, the funds investors need to know that whether the funds achieve their goal through evaluate funds'performance and the manager's investment skills. The funds management companies need the evaluation to find problems and improve their operation. The superintendent also needs the evaluation to make more efficient policy. So it's very important to evaluate funds performance precisely.Much research has been done on the performance evaluation of funds, and some experts abroad have set up a mature and systemic theory system through decades of hard work. But related research in China is still very primary because the security investment funds appear in China for a short time. This paper examined and studied the theoretical bases and methods in evaluating funds performance, and based on the typical evaluation methods of the investment funds (Treynor performance Index, Sharpe performance Index, Jensen performance Index, T-M model, H-M...