Research on investment management ability of mutual security investment funds

this paper studies securities selectivity and market timing ability of mutual fund in China applying the evaluation model of securities investment fund manager stocks selectivity of Treynor and Mazuy and according to each weekend unit net value data of seven mutual funds: Huaan Innovation, Southern Sustaining Growth, Huaxia Growth, Guotai Golden Eagle, Penghua Industry, E Fund Stable Growth and Fuguo Dynamic Balance within total 48 business weeks from August 2002 to August 2003. The study result showed that stock selectivity of sample fund Was not good; a majority of sample funds had no market timing ability; the difference in management ability of fund manager was greater; the phenomenon that fund centralizes holding large-cap blue-chip stocks was comparatively obvious. Based on this, this paper puts forward six improvement suggestions for investment management ability of mutual funds manager in China.