Since 2001, China's first open-end fund - Huaan Innovation has been listed since its listing, China's securities market has made a pivotal role in the development of the investment market, the securities investment fund has played a pivotal role, gradually gain market recognition, while the open-end fund with its unique The advantage has attracted a large number of investors, and the scale has gradually expanded, which has also had an increasingly large impact on the A-share market. However, the evaluation mechanism of open-end fund performance is relatively backward, which brings great inconvenience to the investment work of stakeholders. Therefore, how to effectively evaluate fund performance has become a hot issue in the fund industry. Years of market operation have made people gradually realize that the important role of liquidity risk in open-end funds has also attracted more and more attention from the fund industry. This paper analyzes the impact of turnover rate and information ratio on China's fund performance (measured by Sharpe ratio, Treynor index, Jensen index) through empirical research, and attempts to help fund industry choose the right way to improve fund performance through research results. This paper selects the panel data of 476 funds from 2009 to 2015, and analyzes the relationship between liquidity risk and fund performance by using the fixed effect model of heteroscedasticity control. There is a positive correlation between turnover rate and information ratio and fund performance. Finally, this paper combines the reality of China and the empirical results from the perspective of investors, fund management companies and regulatory agencies.