Analysis Of Factors Affecting Equity Fund Performance

With the development of reform and opening up and the rapid development of China's economic strength,national income continues to increase.The establishment of Huaan Innovation issued by Huaan Fund is China's first open-end fund.Since then,China has entered a trend of public funds.In 2018,the number of open-end funds in China reached 5147,and the net asset value of the fund reached 12.8 trillion.In the past decade,the number and scale of open-end funds have achieved leap-forward growth.However,China's fund industry started late,has low degree of development,and less theoretical research accumulation,then China's fund industry still has many problems in terms of legal supervision and choice of space,which needs to be resolved.Domestic and foreign scholars have conducted a lot of research on the factors affecting the performance of the fund,and have achieved research results with higher academic level.However,through inductive analysis of these results,we can find that the theoretical research on these factors is not systematic.The research focuses on the impact of a single factor on performance without considering the influence of many factors.At the same time,thanks to the mature model theory,the research on fund performancemainly focuses on the fund manager's timing ability and stock picking ability,and the research on fund performance is not perfect.Therefore,based on the problems faced by China's fund industry and the related research at home and abroad,the paper screens out the fund manager's stock picking ability,timing ability,rate,fund size,establishment period,beta coefficient,industry concentration,stocks concentration,shareholding ratio and others,totally 12 micro-level factors that may affect the performance of fund performance are empirically analyzed.Principal Component Analysis is used to fit four comprehensive indicators from 12 original variables,and then from each comprehensive indicator selects one or twoas the most representative influencing factors,which participated in panel regression model analysis.The results showed that after the Principal Component Analysis,six variables were selected for panel regression analysis.The four variables includingfund size,shareholding ratio,timing ability and stock picking ability were positive for fund performance,In which the fund manager's stock selection ability has the greatest contribution to fund performance.The fund's establishment period,fund yield change rate(risk factor)were negative for fund performance.Based on the actual situation and research conclusions,the paper proposes suggestions from three aspects: fund investors,fund companies and regulatory authorities,in order to provide operational reference for fund investors and has a certain meaning for operation management of fund companies in China.