Performance Evaluation of Stock Funds Based on Cluster Analysis and Factor Analysis

Fund performance is an important basis for fund investment decisions. Foreign securities markets and securities investment funds developed relatively early, in the 1960s, researchers have put forward many indicators and models to evaluate fund performance from different angles and aspects, includes T-M model, H-M model, three factor model and improved four factor model. As the most mature country in the world, the United States has done a lot of empirical research on fund performance evaluation. Most of the studies show that the fund can not significantly overcome the market due to the influence of many factors such as stock selection ability and timing ability. On the basis of screening all kinds of international research results, combined with the actual situation of domestic fund market, this paper selects five indexes, including net return rate, sharp index, market risk, timing ability and stock selection ability, to establish the corresponding mathematical model, and uses the method of cluster analysis and factor analysis to evaluate the performance of fund, and the model is tested and analyzed. The experimental results show that the method proposed in this paper has good evaluation performance.