Analysis Of The Differences Of Redemption Puzzle For Different Types Of Investors Under Different Stock Cycles

The purchase and redemption mechanism is the core link in the management of open-end funds.It releases a hidden incentive to fund managers.Many scholars find that the performance and capital inflow generated by such incentives will have a positive relationship,which is conducive to the formation of the market.The "reward and punishment" mechanism.However,some scholars in China have found that the performance of funds in the market is negatively related to the inflow of funds,that is,the “redemption vision”.The purpose of this paper is to make the relationship between fund performance and capital inflow from the perspective of investors’ purchase and redemption behavior.A theoretical explanation.This paper first reviews the relationship between fund performance and capital inflows,and finds that there is no literature on the relationship between different types of investor fund performance and capital inflows in different stock market cycles.Therefore,this paper deals with different types of investors in different stock market conditions.The differences in investment behavior were considered.In the market segmentation,this paper choose s a non-parametric method to distinguish the bull market and bear market trends in the market.At the same time,it divides the capital flow,and distinguishes the institutional investor capital inflow and individual investor capital inflow.Through the regression analysis of the data,explore the relationship between the capital inflows and fund performance of different types of investors in different stock market conditions.This paper selects the 2006-2017 sample interval,and divides the stock market according to the Shanghai Stock Index.For the open-end fund,the stock-type and partial-share hybrid fund data are used as sample data to conduct empirical research,and the final yield between the fund and the net inflow of funds is obtained.The relations hip shows a negative correlation,that is,a "redemption vision." Overall,the relationship between fund performance and capital inflows is shown as: positive correlation in the bull market and negative correlation in the bear market.Under different stock market cycles,the relationship between fund performance and net inflow of institutional investors is positive,the relationship between fund performance and net inflow of individual investors is negative,and institutional investment is found in different stock market conditions.There is no difference in sensitivity to performance,and individual investors have different sensitivities to performance.