Abstract:

This empirical study indicates that the average performance of the domestic common stock index funds with passive management were significantly better than, at least not significantly worse than, that of the domestic common stock funds with active management from the beginning of 2006 to the end of June, 2007. This tends to support the semi-strong form EMH. The number and scale of the domestic common stock index fund is relatively small, so we will see it experience a faster development in the near future.

Key words: active management, passive management, efficient market, investment fund, adjusted net asset value (adjusted NAV)