Fund style drift and fund performance: Evidence from China.
This study selects the quarterly data of all equity and equity-oriented hybrid open-end funds in China from 2007 to 2022 as the research sample, and examines the impact of fund style drift on fund returns through a two-ways fixed effect model. Our results show that overall style drift tends to impro...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Public Library of Science (PLoS)
2025-01-01
|
| Series: | PLoS ONE |
| Online Access: | https://doi.org/10.1371/journal.pone.0316932 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1823856819044352000 |
|---|---|
| author | Yaozhi Chen Honghong Wei |
| author_facet | Yaozhi Chen Honghong Wei |
| author_sort | Yaozhi Chen |
| collection | DOAJ |
| description | This study selects the quarterly data of all equity and equity-oriented hybrid open-end funds in China from 2007 to 2022 as the research sample, and examines the impact of fund style drift on fund returns through a two-ways fixed effect model. Our results show that overall style drift tends to improve fund performance. However, after differentiating the type of style drift, we find that fund drift based on stock picking abilities enhanced performance, whereas fund drift based on chasing market trends reduced fund performance. This study presents a new measurement method based on industry allocation, providing an empirical foundation for research on industry-specific theme funds. It also offers fund managers insights for optimizing performance evaluation and incentive systems, while serving as a reference for regulators to develop flexible, effective policies for market stability. |
| format | Article |
| id | doaj-art-4c4ea1b8412545259348fbddf8de9a8a |
| institution | Kabale University |
| issn | 1932-6203 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj-art-4c4ea1b8412545259348fbddf8de9a8a2025-02-12T05:30:51ZengPublic Library of Science (PLoS)PLoS ONE1932-62032025-01-01202e031693210.1371/journal.pone.0316932Fund style drift and fund performance: Evidence from China.Yaozhi ChenHonghong WeiThis study selects the quarterly data of all equity and equity-oriented hybrid open-end funds in China from 2007 to 2022 as the research sample, and examines the impact of fund style drift on fund returns through a two-ways fixed effect model. Our results show that overall style drift tends to improve fund performance. However, after differentiating the type of style drift, we find that fund drift based on stock picking abilities enhanced performance, whereas fund drift based on chasing market trends reduced fund performance. This study presents a new measurement method based on industry allocation, providing an empirical foundation for research on industry-specific theme funds. It also offers fund managers insights for optimizing performance evaluation and incentive systems, while serving as a reference for regulators to develop flexible, effective policies for market stability.https://doi.org/10.1371/journal.pone.0316932 |
| spellingShingle | Yaozhi Chen Honghong Wei Fund style drift and fund performance: Evidence from China. PLoS ONE |
| title | Fund style drift and fund performance: Evidence from China. |
| title_full | Fund style drift and fund performance: Evidence from China. |
| title_fullStr | Fund style drift and fund performance: Evidence from China. |
| title_full_unstemmed | Fund style drift and fund performance: Evidence from China. |
| title_short | Fund style drift and fund performance: Evidence from China. |
| title_sort | fund style drift and fund performance evidence from china |
| url | https://doi.org/10.1371/journal.pone.0316932 |
| work_keys_str_mv | AT yaozhichen fundstyledriftandfundperformanceevidencefromchina AT honghongwei fundstyledriftandfundperformanceevidencefromchina |