The Studies On Asset Value Evaluation Of Equity Open-end Fund In China

Since the late1980s, securities investment funds in our country have successively undergone three stages, which are early exploration, closed-end fund development and open-end fund development. Nowadays, under the guideline of many good policy, securities investment funds have emegred as one category of the most important institutional investors in Chinese financial market. With the rapid development and increasing species of securities investment funds, especially the open-end fund, the study on it is still lagging behind. Many issues require in-depth discussed, particularly, the research of the evaluation of open-end fund has important theoretical and practical significance for fund investors and managers.Because of its inherent superior balance mechanism, efficient incentive function and high mobility etc advantages, open-end fund attracts numerous investors’ attention. This paper argues that the open-end fund has intrinsic value, just like stock. The value of open-end fund, which is proportional to the combination efficiency and the insight level, roots in effective combination of its asset and fund managers’keen ability of capital market insight. Only high efficiency fund can attract more investors. The intrinsic value of open-end fund determines its price, the price fluctuates accounting to the value, the price will be equal to the value finally.In our research, we select the fund portfolio as foothold, open-end fund as research object and equity fund as research samples. We study systematically the intrinsic value of open-end fund. On the basis of using the capital asset pricing model to determine capital cost rate and using GM(1,1) model to predict the future periods, we use economic value added model to evaluate the intrinsic value of open-end fund.According to the evaluation model of open-end fund’s intrinsic value, the article selected two equity open-end funds as sample in demonstration researeh(bosera select fund and fullgoal tianyi fund). Considering data availability, this paper chooses half year as research cycle. The study has found that the intrinsic value of both bosera select fund and fullgoal tianyi fund are higher than those net asset value. Mainly because the development of China’s fund industry is not sound and our country’s securities markets are weak efficiency.