Fund Holding Allocation Strategy and Fund Performance：A study based on Chinese investor perspective

This paper investigates the relationship between fund shareholding strategies and fund performance from an investor's perspective, which is essential for the sustainable development of the fund market. Specifically, we analyze the effectiveness of stock allocation strategies in China's public fund industry, using quarterly data from 2015 to 2021. Furthermore, we explore the mechanism by which changes in a fund's stock concentration influence its net asset value (NAV). The empirical findings reveal that fund managers' asset allocation decisions have a significant negative impact on the growth rate of NAV performance. Additionally, an increase in stock concentration leads to a decline in net fund inflows, further negatively affecting fund performance. The robustness of these results is confirmed after controlling for variables such as industry concentration, fund age, turnover rate, and size. Overall, our findings offer valuable insights for fund managers and investors, facilitating more informed investment decisions and contributing to the sustainable growth of the fund industry.