Composite Rating Method Of Equity Fund In China

In this paper, we rate the composite level of the equity fund in China. First ofall, classify to the equity funds, and rating to the funds by the diffierent types.Thenthe indexes are belong to three fields which are the fund performance,the fundmanagers, and fund management companys.We use The Analytic Hierarchy Processto establish the weight of the index and to count the total score. Finally, we use the2007-2011data of Chinese fund market to take the empirical research. From that, wecan summarize and conclude the influencing factor of fund performance andincidence of every factor. The way of composite rating can evalute fundsperformance and value on investmeng roundly and preferably.This article is divided into four sections: The first chapter is an introduction,which introduces the back ground and research meaning of this article, give aliterature review, review the research result of fund rating method of scholars atChinese and abroad. The second part is the meaning and methods of fund’s classify,and analysis whether the basis market of positive strategic equity funds is correct.The third part introduct the rating methods of abroad institution, set out the ratingway of equity funds of the famous rating institution. The fourth chapter build therating method of the stock funds, set out the evalution index, confirm the weight ofindex by The Analytic Hierarchy Process. The fifth chapter is the empirical research,build the sample by Chinese equity fund’ s data, evaluating and rating the funds inthe sample. The last part is the conclution and advises, conclude the influencingfactor of fund performance and incidence of every factor.From the empiricial research, we can find that between all the indexes whichdeterminate the evalution of the funds, the indexes of funds have the most obvious effect, and the fund management company after that, what’s more, the fund managerhas the less effect. From that, the investors should choose the funds which accordwith their expected risk, and concern the previously evalution and the managementcompany of the funds when they choose the equity funds.