Seize Chances: Quick Fund Establishment Boosts Performance
Since late September, a flurry of favorable policies has been rolled out, leading to a strong rebound in the A-share market. Some equity funds established recently have seized the opportunity to build positions quickly, achieving impressive returns.
New funds have shown dazzling performance, with the highest increase exceeding 30%.
After a series of significant favorable policies were announced on September 24, the A-share market surged. Data shows that as of October 11, the increase in the mainstream A-share broad-based indices exceeded 15%. Leveraging this rebound, the net value growth of equity new funds established after August is quite remarkable.
In terms of actively managed funds, the Allianz China Selection A, established on September 3, had a net value increase of 22.4% as of October 11; the Huibai Chuan Yuanhang A, established on August 14, currently has a return rate of 14.14%; the Dongxing Growth Selection A, established on August 1, has risen by 19.87% since its establishment; the Southern Zhihong A and the Huaxia Zhisheng Selection A, both established in early August, have both achieved returns of over 10%.
In addition, funds with less than two months of establishment, such as Industrial Securities Quality Selection A, AVIC Vision Navigation A, and Dongwu Science and Technology Innovation A, have also seen a significant increase in net value.
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The performance of newly established passive index funds is even more dazzling. The China Merchants Zhongzheng Cloud Computing and Big Data Link A, established on September 19, had an increase of up to 28.2% as of October 11; the Penghua Zhongzheng Cloud Computing and Big Data Theme Link A, established on September 3, has a return rate of 31%; the GF National Index New Energy Battery ETF and the CEF Sub-industry Chemical Industry Theme Index A, two index products established on September 18 and September 20 respectively, have also achieved net value increases of over 15%.
Industry insiders have stated that compared to active funds, index funds have a shorter construction period and faster construction speed. Industry-themed funds issued at the low points of the market and related industries can easily achieve precise bottom fishing by quickly building positions.
The reporter noticed that the construction period of some index funds is quite short. Taking the China Merchants Zhongzheng Cloud Computing and Big Data Link A as an example, the fund was established on September 19 and opened for subscription and redemption on September 26, meaning that the construction was completed in just one week. The CEF Sub-industry Chemical Industry Theme Index A was established on September 20 and opened for subscription and redemption on September 24, completing the construction in just 4 days.
"Passive investment index funds do not have as many 'stories' to tell as active funds. If the corresponding style and theme are not in the spotlight when the product is launched for the first time, it is quite difficult to reach the establishment threshold of 200 million yuan. Generally, fund companies will continue marketing and wait for opportunities to better protect the interests of investors. At relatively low points in the market, fund companies and fund managers will choose to accelerate the construction of positions to seize opportunities and make achievements." A public fund person in Shanghai stated.
Overall, against the backdrop of a market-wide rebound, the new equity funds with dazzling performance have a rich configuration direction, involving both technology growth and high dividend assets.Some funds' slow position-building drags down performance
While the net value of a batch of new funds has soared, some products have failed to seize opportunities in time, leading to poor performance.
For example, a utility sector index fund established on September 11 had a net value decrease of 5% as of October 11; the SSE STAR 100 Index Enhanced Fund established on September 27 has fallen by 4.49%, and a linked fund tracking the CSI 300 Index established on September 27 has fallen by 5.73%.
Among actively managed funds, a product established on September 24 has fallen by more than 6%, and another fund established at the end of August has nearly a 16% drop.
The main reason for the lagging performance of these funds is the inappropriate choice of position-building timing and missing the ideal entry point. Moreover, some of these funds were established when the market was already on an upward trend, and the fund managers built positions at a phase high.
There are also some funds that have not yet started to build positions, such as a mixed fund established on September 19, which currently has no change in net value. Although this strategy can avoid significant losses in the short term, it also fails to capture the gains brought by market increases.
A public fund person in South China pointed out that after a continuous sharp rise, the market trend has further intensified, and the difficulty of fund managers in building positions has increased. The reporter noticed that among the funds established in the first week after the festival, most net value changes were relatively weak, showing that fund managers are becoming more cautious in building positions. "Choosing the timing of building positions is very crucial, especially when market sentiment fluctuates greatly, fund managers need to find a balance between caution and aggressiveness," said the person above.
Looking forward to the future market, integrating the views of multiple institutions, after the market has undergone a general rise and repair, it may enter an adjustment phase. Subsequent investors need to pay attention to the effects of policy continuous intensification and factors such as the improvement of the basic situation.
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