Research On The Influence Of Investor Sentiment On Fund Performance Flow

Open end funds are a securities investment method that shares risks and benefits,and their changes constantly affect the development of the stock market.In recent years,the increasingly prominent earning effect of the fund market has attracted a large number of investors,and the open-end fund market has also become increasingly prosperous.It is undeniable that the booming fund market has also brought a series of problems,such as with a large amount of funds flowing into the open-end fund market,the difficulty of fund managers’ fund management has increased to an unprecedented level.Moreover,many new investors entering the market are irrational investors dominated by emotions,and the changes in fund flow caused by these investors’ noisy trading behavior may affect the healthy development of the securities market.Therefore,exploring the changes in fund performance flow relationships from the perspective of investor sentiment is of great significance for fund managers,individual investors,and even the entire open-end fund market.Scholars generally believe that fund performance is the most direct factor affecting fund flow changes,but there is no consensus in the academic community on the "performance flow relationship" of funds.In addition,practice has shown that investors are influenced by emotions when making investment decisions,such as the common phenomena of "herd effect","attention shift",and "disposal effect" in the open-end fund market.In order to ensure the logical integrity and practicality of this study,this article comprehensively explores the following questions: can the improvement of fund performance lead to an increase in fund flow? Is there a "star effect" in China’s open-end fund market? How does the ’performance flow relationship’ of a fund change under the influence of investor sentiment? What are the pathways through which investor sentiment affects the changes in the fund’s original "performance flow relationship" ?This article uses the data of China’s open-ended stock funds from 2015 to 2022 as the research object,and comprehensively considers the above issues from the perspective of the short,medium,and long periods.Research has found that:(1)There is a positive relationship between the "performance flow relationship" of funds,which means that the flow increases with the increase of performance.(2)There is a convex nonlinear relationship between fund performance and flow,indicating that there is a "star effect" in China’s open-end funds.(3)Investor sentiment can significantly increase the inflow of funds.(4)Investor sentiment weakens investors’ sensitivity to fund performance and "star funds"(5)The path of investor sentiment changing the "performance flow relationship" of funds is mainly achieved through fund subscription.Based on the conclusion of the impact of investor sentiment on the performance flow relationship of open-ended funds,this article proposes some suggestions from the perspectives of investors,fund managers,and securities regulatory authorities,aiming to promote the high-quality development of open-ended funds in China.