With the smooth start of the share-trading reform, China stock market began an unprecedented bull market after years of silence, residents' investment enthusiasm continued to grow, and the stock market scale continued to expand. With the continuous development of the bull market pattern, various investment markets competed, and the China fund industry represented by institutional investors made great progress, both in scale and in the number of funds. By the end of 2007, 364 different types of securities investment funds had been established in China securities investment fund market.

In just two and a half years, the China stock market rose from the highest point of 998 points to 6 124 points, and the increase was more than five times in the context of maintaining a good external investment environment. Securities investment funds, relying on advanced investment concepts, professional management teams and perfect risk control measures, have brought rich profits to investors and achieved satisfactory performance returns. At the same time, the performance of securities investment funds has become the focus of attention of all parties. The performance difference of securities investment funds, as well as the interdependence and volatility of the securities market are all concerned by investors. This paper will mainly analyze and study the performance of investment funds and rating agencies.

Part I: Securities investment funds. Overview: This paper mainly introduces what securities investment funds are, the characteristics of securities investment funds and the classification and comparison of different types of investment funds.

The second part: Review and prospect of China investment fund market: Review the investment fund market in China in 2007 and prospect the investment fund market in China in 2008.

Part III: Performance evaluation of securities investment funds: Any fund rating is based on the classification and rating methods of domestic and foreign fund rating agencies, and Morningstar, a Morningstar fund rating company, is introduced as the rating data of China securities investment funds.

The fourth part: empirical analysis of the statistical data of the performance of securities investment funds, and finally draw three conclusions: first, the performance of funds does not have the characteristics of long-term stability. In one period, funds with excellent performance may not be equally excellent in another period. Secondly, the performance of securities investment funds is highly correlated with the fluctuation of investment market. Third, except for a few funds, the vast majority of index funds outperform the same period to obtain excess returns, but index funds can obtain excess returns when prices fall.