An empirical study of mutual funds performance in China

Abstract

This study evaluates equity mutual fund performance in the Chinese mutual funds industry by employing Goetzmann and Ibbotson’s (1994) method. The data set consists of all open-end equity mutual funds in China and is free of survivorship bias. The research period covers January 2002 to December 2010. Equity open-end funds selected for this study are not terminated or merged into other funds before the end of 2010. The results from this study reveal that the equity mutual fund managers in China have selective ability to earn excess returns, but do not have market timing ability.