Study On Stock Market’s Impact On Active Investment Style Of Equity Fund

With the continuous accumulation of national wealth and the rapid development of national investment concept,public offering fund has gradually become the main way of investment and financial management for individuals,families and institutions in China.Stock fund and partial stock fund and other funds with stock as the main investment object have attracted much attention.When the fund is issued,the fund company will specify the investment style in the prospectus,and investors can invest in funds with different degrees of active management according to their own investment characteristics and risk preference.However,in the actual investment process,a large number of studies believe that:the change of market environment will have an impact on the adjustment behavior of fund managers,causing the phenomenon of "style drift",which will lead to the violation of investors’ original investment intention and damage the interests of investors.So it is very important to identify the real active investment style of the fund.At the same time,due to the high volatility of the stock market,it brings great challenges to investors’ fund selection,institutional portfolio decisions and market supervision of the regulatory authorities.Therefore,it is necessary to analyze the changing trend of active investment style in the fund market and study whether the overall change of active investment style in the biased fund market is affected by the fluctuation of the stock market,especially during the bull and bear markets of the stock market.This paper takes stock fund and partial stock fund as the research object,and uniformly defines them as "partial stock fund".It is mainly divided into three levels to study the influence of the active investment style of the biased fund market on the stock market fluctuations:first,the author tries to analyze the reasons why the active investment style is affected by the stock market fluctuation from the perspective of efficient market hypothesis and behavioral economics.Secondly,to identify the active investment style,and compile the active investment style index of the biased fund market.Finally,it analyzes the relationship between active investment style and stock market fluctuation.It can be seen from the results that there is indeed a large degree of active investment style deviation in the current market,and there is a significant positive correlation between the degree of active investment and the market volatility.This is also in line with the reality.When the market changes,fund managers have stronger investment sentiment and are more willing to increase excess returns through stock selection or position selection,which also reflects the general view of fund managers on the effectiveness of the Chinese market.The identification of active investment style of biased fund is helpful for investors to make more accurate investment decisions.The index of active investment style in the biased fund market can enable market participants to have a more macroscopic grasp of the investment style of the fund market.Active investment style is affected by stock fluctuations,especially the direct relationship between the bull and bear cycle and fund performance,which provides a theoretical basis for investors and fund institutions to make investment decisions and regulators to supervise the market(guide market sentiment,optimize the ratio of fund structure,etc.).