An Empirical Study On Performance Rating Of Chinese Open-end Equity Funds

Chinese security funds flourish since1990s. It has been a concern to the domestic scholars and investors that how to choose better performing funds from different funds to invest, therefore, it is very necessary to rate the performance of China fund.There are nine popular indicators of fund performance, such as fund yields mean, variance fund returns, valuation ratios, β coefficient, Treynor index, Sharp ratio, Jensen index, stock selection ability and timing ability. This article carries on the statistical analysis with SPSS16.0software according to the data collected from the Hexun network and the data of the nine indicators. To rank and grade67funds according to the factor score calculated by the dimensionality reduction of the nine indicators. Finally, the funds of performance similar are classified by cluster analysis.Through analysis, the funds of better performance are ICBC Credit Suisse Core Value Fund, Aetna Investment Fund and Franklin Sealand elastic Fund. The results show that ranking funds by the public factor is different from by each individual indicator, in the same words, it shows funds unilaterally and rating results are one-sided, in contrast, factor analysis can evaluate performance of funds comprehensively.The cluster analysis classifies ICBC Credit Suisse Core Value Fund, Aetna Investment Fund and Po Hong consumer goods fund as independent class, and the remaining64funds as another class. Cluster analysis further explains the effectiveness of factor analysis of Fund Performance Evaluation.