The Impact of Market Sentiment on Fund Flow

DOI

10.2991/aebmr.k.210917.037How to use a DOI?

Keywords

investor sentiment, fund performance, fund flow, turnover rate, PCA proxy

Abstract

This paper studies the impact of market sentiment on fund flow. We collect fund data from 2010 to 2020 and relevant data to measure investor sentiment. At the same time, the fund is divided into six different types and analyzed respectively. We find that the open-ended fund, LOF fund, the open-ended fund (with a fixed closing period), and the ETF fund lead to the increase of fund redemption share with the increase of investor sentiment. Moreover, In the case of the same investor sentiment, the larger the scale of the fund, the smaller the redemption share of the fund. Second, FOFs and innovative closed-end funds are buying more shares as investor sentiment grows. At the same time, in the same investor sentiment, the larger fund size will reduce the subscribing share. This study provides a new perspective for understanding the relationship between fund performance and fund flow in China and is conducive to investors making rational investment decisions.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Taoyu Wen
AU  - Boyuan Zhang
AU  - Xijue Zhang
PY  - 2021
DA  - 2021/09/18
TI  - The Impact of Market Sentiment on Fund Flow
BT  - Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)
PB  - Atlantis Press
SP  - 231
EP  - 236
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210917.037
DO  - 10.2991/aebmr.k.210917.037
ID  - Wen2021
ER  -