Study On Investor’s Subscription And Redemption Of Open-ended Stock Fund

As one of open-end funds, Open-ended stock fund plays an important role in thedevelopment of fund market and the whole financial markets in China. However, subscriptionand redemption of open-ended stock fund in China have large fluctuation. This is phone toproblems of insufficient subscription, excess subscription or insufficient redemption. The largefluctuation of subscription and redemption is not conducive to fund companies to form a stablesize and investment style. And it is not conducive to the stability of the fund and financialmarkets. Therefore, it is necessary to have study on subscription and redemption ofopen-ended stock fund, and to take appropriate measures to solve the current problems. Thenwe can promote sustained and healthy development of open-ended stock fund.The article choose open-ended stock fund as as the research object. Firstly, summarizingthe current situation of open-ended stock fund subscription and redemption in China. Secondly,generalizing the influencing factors of subscription and redemption on the basis of theprevious studies, analyzing these influencing factors and giving assumptions. Then using paneldata analysis method to analyze subscription and redemption in different stages. Finally,proposing recommendations to fund companies and the government based on the empiricalanalysis.Thesis finds that there are six main factors of subscription and redemption. They arestock market movements, fund performance, fund dividends, fund price, fund size, fundsurvival time. And these six factors have different effects on subscription and redemption ondifferent stages. Based on the above findings, the fund companies should steadily improveperformance, and adjust the subscription and redemption on the different stages, and the government should create a good stock market investment environment and standardize fundsales activities, establish the investor education system.