Research On The Application And Redemption Decision Of Fund Investor

The complexity and professionalism of securities investment make the investment ability of fund managers an important consideration in the decision-making of fund investors.As the weak side of information,investors will try their best to search for relevant information to speculate on the investment ability of fund managers.In the past,the information channel for investors to obtain the ability of managers was basically limited to the past performance of fund managers,but the rise of multi-tasking management(fund managers manage two or more funds at the same time)in recent years just provided a new channel for fund investors to search for relevant information.This paper attempts to answer whether fund investors will infer the future investment ability and performance of fund managers by understanding the performance of funds managed by fund managers at the same time,so as to make fund subscription and redemption decisions.Taking the open-end partial equity funds from 2007 to 2020 as a sample,this paper tests whether the historical performance of any fund managed by multi tasks contains information about the fund manager’s ability,and whether investors infer the fund manager’s investment ability based on this information,so as to make a redemption decision.The following findings are obtained:(1)the performance of multi-tasking managed funds has sustainability and predictability over a period of time,and this predictability has a cross impact among funds,indicating that any fund under multitasking management of fund managers contains information about the investment ability of fund managers;(2)When the historical performance of the fund itself is good,it will attract capital inflows.The good historical performance of other funds managed by the same fund manager can also bring spillover effects to the fund.indicating that investors will indeed infer the investment ability of the fund manager based on the historical performance of the fund before making the redemption decision;(3)Further research shows that the investors’ decision to apply for redemption is effective,investing in the funds that they believe are managed by capable fund managers can bring excess returns in the future.It is also found that investors pay more attention to funds with good performance,and it is easier to learn relevant information from them to speculate on the investment ability of fund managers.This study provides a new perspective for the evaluation of domestic fund investors’ decision-making behavior of application and redemption,and provides evidence for whether investors can make investment decisions effectively by learning the ability of fund managers,which is helpful to understand investors’ pursuit behavior of fund performance from the level of fund managers.This study also provides a new channel for investors to search for information about the ability of fund managers,and provides a basis for investors to pay attention to the performance of other funds managed by fund managers at the same time.