Chinese Open-End Fund Operational Efficiency Appraisal Using Data Envelopment Analysis

Abstract

This study uses data envelopment analysis (DEA) to evaluate the operational efficiency of 50 Chinese open-end funds, and makes a comparative analysis of selected fundspsila operational efficiency according to the fund size, investment type and investment style from the perspective of the overall and division. The result showed that bond funds had the maximum and stable average efficiency, hybrid funds made poor efficiency and equity funds ranked between them. Medium-scale funds showed the maximum and stable average operational efficiency among equity funds. Similarly, index funds showed the maximum operational efficiency and the strong continuing growth among the equity funds with different investment styles. Value funds showed the steady performance, while growth funds had significant operational efficiency of growth with greater fluctuation.