Analysis Of Fund Performance's Influential Factors

With the development of Chinese financial market, more and more people are willing to invest funds. What is a great fund? Which fund should I invest? How can I invest a great fund? People have too much questions, but the most important question is what component will affect the performance of a fund. As soon as we find the solution of this question, other questions will disappear. The main objective of this paper is finding the solution of this question. We choose two main groups of funds which are stock funds and bond funds.First of all, we pick up 12 random funds(six funds for each group) in China mainland of our data sources. Second, we identified the top 5 factors as our independent variables according to all data we collected and make assumptions based on that, which are the size of fund, fee rates of funds, dividends, the skill of fund manager and changing of fund manager. On the other hand, we also choose two macroscopic factors which are GDP and Shanghai Composite index. Then we calculate the fund net growth rates as our dependent variable for measuring the performance of funds.Based on 12 historical data from January 2006 to December 2015, we use Eviews to analyses data and put them into a multiple regression model. Then we can get the most important factor to the performance of funds.Finally, this paper will get some conclusions and suggestions for the further development of Chinese mainland funds' market based on the essays we found.