Impact of Fund Size on Fund Performance —Based on China's a Share Market

With the data of open-end equity funds from Jan2014 to Dec 2016, this paper aims to analyze the impact of fund size upon fund performance through different evaluation index, using the method of theory analysis combined with empirical test. After taking the liquidity ratio, concentration of investment and fund age as control variables, the regression results show that the fund size and fund performance show inverted U type nonlinear relationship, that is to say, the fund incomes increase firstly and then begin to decrease as the fund size expands. Finally, this paper puts forward some relevant suggestions to investors and fund managers based on the empirical results.