Research On The Performance Evaluation Of China Large Cap Selected Mixed Funds

With the rapid development of China’s securities market,the scale of the fund industry is expanding,and a number of outstanding public hybrid security investment funds have emerged.At present,domestic and foreign scholars mainly use large sample data to carry out empirical research on the investment strategy and performance of public security investment funds,and seldom do in-depth research on the investment strategy and effect of single fund.This paper studies the investment strategy of Huaxia Overall Market’s Selected Hybrid Fund,which has the first historical performance in the public securities investment fund industry,and uses empirical method to analyze its performance,in order to provide reference for investors in evaluating fund performance,and provide a method for managers to improve fund performance and ideas for fund companies to better manage their funds.This paper makes a deep study of the company,managers,performance,stock selection and timing strategies of the Huaxia Overall Market’s Selected Hybrid Fund.Then the paper uses a single-factor model,TM-FF3 model,TM-FF3 model with ‘lifting sedan chair’ factor added and DEA model to conduct empirical analysis on the overall return of the fund,the ability of the stock selection and timing of the,the behavior of ‘lifting sedan chair’of fund family,and the overall performance of the fund.The single-factor model uses annual data from 2005 to 2018.The TM-FF3 model uses weekly data from August 2004 to December 2019."Lifting sedan chair" factor is the annual difference of joint stock yield between Huaxia Overall Market’s Selected Hybrid Fund and other hybrid funds within the fund family from 2006 to 2012.The DEA model selects four input indicators and two output indicators to analyze the annual data from 2005 to 2018.The results show that Huaxia Overall Market’s Selected Hybrid Fund has achieved positive riskadjusted returns for most of the time and have overcome performance benchmarks and market returns,which indicates that the overall investment strategy of the fund has achieved good practical results.The fund shows overall significant stock selection ability without timing ability;Among all fund managers,Wang Yawei has significant positive stock selection ability,and Gong Huaizhi has significant positive time selection ability,Tong Wei has both a significantly negative stock selection ability and a significantly positive time selection ability,while other fund managers do not have significant stock selection and timing ability.Moreover,there is a slight lift to Huaxia Overall Market’s Selected Hybrid Fund within the family during Wang Yawei’s tenure as the fund manager,but the fund’s outstanding performance during this period was not significantly affected by the family’s behavior of ‘lifting sedan chair’.In addition,the comprehensive performance results based on annual data of DEA show that the overall efficiency value of the fund during the tenure of Wang Yawei and Gong Huaizhi is higher than others.judging from the changes in the scale return of the output of the DEA model,except for the case where the total efficiency of the fund is 1,the rest of the years are increasing in scale,indicating that the fund manager should actively expand the scale of the fund.According to the analysis of the input variable relaxation variables obtained from the DEA model,the β coefficient and the maximum retracement rate of the fund are relatively large.So fund managers can improve overall performance by appropriately reducing the fund’s beta coefficient and maximum retracement rate.