The Structure Of Performance Evaluation Index System And Empirical Analysis Of Chinese Privately Offered Funds

Performance evaluation of funds is not only a method to evaluate the value ofinvestment management but also a feedback mechanism to improve the investmentmanagement. It is an important link of the development of fund industry. Since, ourcurrent fund market is in its primary phase, the research and practice of fundevaluation are in the bud and there have no evaluation system of our own. So the fundevaluation system of china becomes a pressing problem that should be settled. Thepaper sets up the evaluation system according to the specialty of china securitymarket and uses the real data of Chinese private funds to carry on empirical analysis.The paper analyzes the problem of private fund evaluation from aspects of theory、method and application. First, the paper analyzes the actuality of our fund market,pointing out the importance of performance evaluation. Secondly, using the matureevaluation indexes and how to select indexes rationally shows the meanings andcalculating method of all the indexes. Then, the paper puts forward the fundperformance evaluation system of china and adopts the Factor Analysis method as acomprehensive evaluation method. Thirdly, according to the evaluation system, weanalyze the performance of some private funds, calculate all the indexes and sort therelative performance of all funds on the basis of comprehensive index. The resultsshows that, if the risk is taken into consideration, most private funds didn’t gainextra-return rate above the market and investment managers didn’t have the markettiming and security selection ability. Relatively, only a few private funds can gainextra-return. The management of investment funds must be improved. Finally, wediscuss the development of private funds in china and give some suggestions aboutthe research area in the future.