Abstract

The concentration on stocks of security investment funds reflects fund managers’ utilization degree of the inefficiency of market, so certain relationship exists between the performance of funds and the concentration on stocks. By analyzing practical data of Chinese stock investment funds, the relationship between the performance and the concentration on stocks is tested in the article, and the result shows that properly high concentration on stocks can help to enhance the risk adjusted return of funds, but too high concentration on stocks will influence the timing selection of funds. And in the test, some different results are discovered.

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