This paper explores the impact of accrual quality information on fund investment decisions, and examines whether fund managers can use the stock’s accrual quality information to obtain excess returns, and the difference in fund manager’s skill to influence the extent of the fund’s excess returns. This paper uses the annual observations of 2851 Chinese funds, from 2005 to 2016 to analyze the fund manager’s stock investment decision. The results show that in China capital market, there is a risk premium for accrual quality, and fund managers can obtain excess returns through selecting stocks with poor accrual quality. And fund managers with better skill, can obtain more excess returns.