Automatic Investment Plan Performance Evaluation And Choice Of The Automatic Investment Plan

With the continuous progress of social economy,residents' investment awareness has become increasingly mature.Securities investment fund,as an investment and financial tool to achieve wealth appreciation,has gradually come into people's sight.There are two main ways of fund investment,namely automatic investment plan(AIP)and lump sum investment method.Currently,a unified analysis hasn't been formed by the academia on the merit and demerit of AIP,but the practical capital market shows a good acceptance to AIP.However,there still exist some problems concerning the practical operation of AIP.The vast majority of studies in this regard are limited to the stage of investment advice given to investors by customer managers and financial specialists in such practical capital market as the banking,securities and funds,etc.For this reason,the thesis is to analyze and discuss the differences in the performance of AIP from theoretical and practical perspective with a view of assisting investors in having a more scientific understanding of AIP.Based on theoretical research,the paper selected the trading data of several different types of fund products owned by three major fund companies(South,Jiashi and Yi Fangda)in Chinese capital market as the study sample during the sample period of 2006 to 2015.The sample is divided into bull market,bear market as well as volatile and smooth market in accordance with the trend of sample data.Under different market conditions,descriptive statistics and model regression analysis are respectively carried out for the AIP of variegated fund products in various companies and for lump sum investment mode.The paper makes a comparison in the risk and gains between AIP and lump sum investment strategies.By means of model regression analysis,the paper analyzes the dependence relation between the gains and risk of different investment modes during the probation period.It turns out that AIP indicates a better risk-gains relationship in the bear market and volatile and smooth market whereas the lump sum investment mode presents a better risk-gains relationship in the bull market.The research result is different from that of other scholars' literature,and also shows that AIP doesn't always perform better than lump sum investment by profiting from fluctuation under any circumstances.This paper sees a systematic study carried out in AIP mode of different types of fund products.With the adoption of Sharpe Index to measure the risk adjusted performance(RDP)of different types of fund products with AIP mode,the RDP(Sharpe Ratio)is respectively calculated with t test method used to examine whether there is a notable difference among Sharpe Ratio of different types of fund products with AIP mode.It is discovered by empirical research that the RDP of different types of fund products with AIP mode shows a significant difference.The Sharpe Ration of exponential AIP is superior to that of other types(Stock,Mixed and Bond types).Based on this research result,the paper analyzes exponential AIP according to the difference in the area of stock sample covered by the exponent.It is discovered that the larger the number of stock sample that the exponent,traced by exponential fund,covers,the higher the Sharpe Ration,thus further exploring the product types compatible with AIP mode.