Fund Performance Evaluation Based On DEA Model

In recent years, the domestic size of the fund, although relatively large fluctuations, but overall the scale of growth is significant. with fund size grows, the number of funds has been in a steady growth trend, it raises some bad securities fund in securities fund market. While the most of the domestic fund performance evaluation method is traditional evaluation methods, selecting different reference and manipulation net asset value and other problems cause estimation error is too large. The fund market as an important capital market provides a lot of financial support for the socialist modernization market construction, the favorable fund market can help Chinese complete Thirteen Five Plan.To find out the drawbacks of the domestic fund market and from investors, regulators and fund managers to improve growth environment of fund market, the fourth chapter paper of this paper analyzes the current situation of performance evaluation status of the domestic securities investment fund performance evaluation method, find the shortcoming of the traditional fund evaluation and the advantage of DEA. I selects 48 open-end fund based on the fund market status quo, combined with local and overseas research of DEA model, construction the method of BCC model for research of funds, according to the empirical results make a suggestion for investors, regulators and fund managers.After empirical research, paper has concludes: China’s fund market as a whole is more poor portfolio ability and poor timing control ability, low ability to resist risks, the Fund’s performance spread by the stock market is large. At the same time get policy recommendations based on the conclusions for the regulatory authorities, investors and fund managers: the regulatory authorities can make DEA performance evaluation method regulatory tool, find the ineffective fund and hidden risks in the fund market and improved early, development advantageously profiles; investors use DEA evaluates fund performance, prevent investment losses, keeping in mind the fund manager’s reputation; fund managers make DEA as a feedback mechanism operating, and combine with salary incentives to improve fund performance.The innovation of this paper is to use a new method for performance analysis, selected appropriate indicators from the traditional fund performance analysis indicators according to the status of the Fund and DEA, combine the advantages of traditional fund performance analysis approach with DEA, results more accurate results.