Research On The Impact Of Style Shifting And Investment Management Activity On Fund Performance

There is no unified style distinction standard and classification system for funds in China at present,so that it is impossible to evaluate the fund style accurately,effectively and timely,which makes it difficult to capture the style fluctuations during the fund's existence.In addition,due to the differences in investment philosophy,investment habits,management methods and professional background,the specific investment strategies adopted by fund manager,which includes active investment management strategies and negative investment management strategies,will be different.These problems will eventually lead to an increase in the systemic risk of the fund and weaken the fund's stability to the market.Therefore,this paper takes the open-end stocks and partial-share hybrid funds as the research object,and attempts to analyze the causes of the fund style conversion and management strategy changes and its impact on performance,which may have a certain significance for protecting the interests of investors and improving the performance of fund managers.This paper mainly adopts the research method combining theory and empirical.The theoretical part mainly organizes the relevant literature and theory of fund's style conversion enthusiasm,investment management enthusiasm and fund performance.On this basis,the paper put forward the quantitative indicators and style models.In the empirical part of this paper,255 open-end stocks and partial stock hybrid funds with complete data from 2010 to 2017 were selected as research objects,this part firstly uses the model regression method to analyze the Influencing factors of fund style conversion and management strategy change,and then uses the unconditional dichotomy to describe the related variables in two dimensions.Finally,this paper focuses on the impact of fund style conversion and investment management change on the next-period performance of the fund,from the perspective of performance pressure and market conditions,using the method of constructing model regression to conduct empirical research,and conducted a robustness test to verify the rationality and correctness of the relevant conclusions of this paper.The relevent conclution of this papaer are as follows:(1)The fund style conversion and management enthusiasm are negatively correlated with the scale and duration of the fund,positively correlated with the fund's fund liquidity,the fund's style conversion is negatively correlated with the current performance,and the performance of the most active and negative management funds in the current period is more prominent;(2)the fund style conversion and investment management enthusiasm is negatively correlated with the next next-period performance of funds,for funds with better performance in the current period,increased style fluctuations will have a more adverse impact on the next-period performance,and for funds with poor performance in the current period,proper conversion of fund style or change of investment structure will have a certain effect on next-period performance;(3)During quarters with good market conditions,the volatility of fund styles and the increased management enthusiasm will aggravate the negative effects on the next-period performance of fund,and the active strategy will not achieve better results.In the quarter with poor market conditions,the fund style conversion has a certain positive impact on the performance of the next period for fund,and the increase in management enthusiasm is beneficial to the fund to obtain better next-period performance,or reduce the fund's loss in the next period,the active management strategy is effective;(4)When the market conditions change in the current period(whether from good to bad,or from poor to good),the increase in style conversion will aggravate the negative impact on the next-term performance for fund.When the current market sentiment is getting better,adopting a more active management strategy will have a negative effect on the next-period performance,but the effect is not significant,which indicating that when the market situation deteriorates,although the current active management strategy has a positive effect on the next-period performance,the impact is not obvious.Finanly,this paper provides corresponding opinions for fund managers about whether they should change the fund's style when facing performance pressure and different market conditions,this may have an effect on protecting the interests of investors and improving the performance of fund managers.