A Study On The Behavior Of Chinese Open-ended Fund Investors

Relative to the closed-end funds, open-end funds have greater advantages in the design of incentive and restraint mechanisms, liquidity, information transparency and ease of investment and other aspects。Frequent fluctuations in cash flow brings a lot of inconvenience to the operation of the fund management company, especially in large size of the redemption fund management companies will be fatal, because the flexible open-end fund subscription and redemption mechanism, fund managers can not foresee and control the behavior of open-ended fund investors redemptions。So, in order to urge the healthy development of open-end funds, It has an important significance to research Chinese open-end fund investors purchase and redemption behavior.Firstly, reference to previous studies on the open-end fund investors behavioral from domestic and foreign scholars, we start our study from a theoretical point of the open-end fund redemption mechanism, in order to explain the causes of fund redemption in Chinese capital market, and this section includes micro-economic analysis and behavioral finance view of analysis; Then we established a model to research the factors which influence the Open-end fund redemption behavior, in this section we use the data from 2005 to 2010 to help empirical analysis; Finally, in accordance with the results of empirical analysis, we draw some conclusions on how to control our country open-end fund liquidity risk and provide some suggestions to help Chinese open-end fund market further improvement.