An Empirical Research On Purchase And Redemption Of Open-end Funds In China

The relationship between the level of performance and capital flows in open-endfund is the focus of the open-end funds research at China and abroad. Mature marketsresearch in abroad shows that the better the fund performance, net capital inflows willbe more, this is consistent to the open-end fund is designed to be,“Survival of thefittest” stimulating exist in the open-end fund; China’s research has reached theopposite conclusion with abroad, the open-end fund market in China have thephenomenon of “redemption confused”, that is, the better the fund performance, netoutflow of funds is more, this is very unfavorable to the healthy development of theopen-end fund.The focus of this study is also the “redemption confusion” phenomenon, but, thisstudy chose a appropriate time period as the study interval, study sample and theperiod of time is more, so this is a large sample research methods; In addition to theaccuracy of the conclusions of the study, open-end fund is divided into stock funds,hybrid funds and bond funds to study respectively, at the same time study the factorshow to impact the fund’s purchase, redemption, and net redemption.After use quarterly data do empirical analysis to open-end fund in our country,this paper draws the main conclusions on the phenomenon of “redemption confusion”is: Large-scale fund redemption phenomenon in the stock funds, hybrid funds andbond funds in descending order, stock funds still showed significantly the higher fundperformance, the higher net redemption, this is “redemption confused” phenomenon;the net redemption of hybrid funds unrelated with the performance of the fund; bondfunds exist the incentive of the “survival of the fittest”, that is, the higher fundperformance, the lower net redemption of the fund.