Research On The Relationship Between Open-end Fund Performance And Investor Selection In China

With the rapid development of the fund industry,open-end funds are playing an increasingly important role in the fund market in China.At the same time,more and more investors are shifting their investment goals to the fund market.For open-end funds,investors are free to make purchases and redemptions of fund assets.When the performance of the fund is good,investors will increase their investment in profitable assets.The net inflow of fund assets will increase and vice versa.Therefore,the funds flow of the fund has become a proxy variable for investor’s choice of behavior,reflecting the investor’s emotions,preferences,and representing the investor’s choice behavior.How to effectively screen funds,how to choose and invest in different types of funds,has attracted the attention of many investors.At present,the academic research on fund performance and fund flow is mostly based on whether there is a redemption vision in the fund market of China.Whether the performance of the fund affects the choice of investors,and whether the selected fund can be excessive,there is not much research on such issues.Based on the relationship theory between fund performance and capital flow,this article empirically studies the relationship between fund performance and investor selection.The article divides the measurement index of fund performance into original income and excess return.According to the fund’s investment targets and fund rate standards,62 sample funds established before 2009 are selected,including 22 equity funds,15 hybrid funds,25 bond funds.The article uses 31 quarters of data from the 1st quarter of 2010 to the 3rd quarter of 2017 to establish a panel data model and perform multiple regression analysis.The empirical results show that the empirical results of equity funds are more significant,the regression results of hybrid funds and bond funds are not significant,and the current performance of equity funds has a more significant positive impact on investors’ choice behaviors.Compared to the fund’s current excess returns,investors are more sensitive to the fund’s original return.In addition,the article selects different fund performance evaluation methods,adopts 22 stock:funds as research samples,and adopts eight quarterly data from the first quarter of 2016 to the fourth quarter of 2017,to further demonstrate the relationship between fund performance and investor selection.The study found that there is a positive correlation between fund performance and investor choice,and investors are more sensitive to the fund’s original return.Finally,the author concludes and analyzes the conclusions of the article,and puts forward simple policy recommendations for promoting the healthy and stable development of China’s fund market.