The surge in technology stocks has remarkably revitalized the performance of actively managed equity funds, establishing them as the top performers in the investment arena this yearThe landscape of fund sales is also evolving, with active equity funds re-entering the radar of investorsPlatforms like Tian Tian Fund Net have reported a consistent rise in investor confidence, highlighting that several high-performing active equity funds have become regular contenders in the list of top inflow funds.

Industry insiders emphasize the significance of both active and passive funds in the public market as essential components of equity investmentThey predict that the collaboration between these two fund types will further advance the growth of public equity investment businesses in the future.

Active equity funds are firmly back in the spotlight.

Evidence from Tian Tian Fund Net illustrates that there has been a clear influx of capital into high-performing active equity funds latelyFunds like Penghua Carbon Neutral Theme Mixed and Yongying Advanced Manufacturing Managed have repeated appearances on the "Top Fund Inflows" list, indicating strong investor interestAdditionally, data from Tonghuashun showcases several active equity funds that have achieved over 100% performance in the last year, maintaining high rankings on the weekly fund inflow list.

Since the fourth quarter of last year, funds primarily invested in technology stocks have seen significant performance increases, which in turn has led to an uptick in their asset sizesFor instance, the aforementioned funds have reported growth in scale of more than 310% from the end of Q3 to the end of Q4 last year, according to Tianxiang Investment Consulting data.

A bank wealth management manager remarked, "Although marketing active equity funds remains challenging, we are seeing signs of recoveryOnce profitable products begin to emerge, the receptiveness among investors gradually increases."

An active equity fund manager highlighted that their fund has recently experienced substantial net inflows, primarily from retail investors

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This trend suggests that active equity funds have inherent investment advantages in sectors like technology growth, with the inflow of funds indicating a slowly recovering faith among regular investors in these funds.

Seizing Opportunities in the Tech Sector

As of February 7, recent data from Choice shows that the equity fund index has risen by 1.95% this year, while the Shanghai-Shenzhen 300 Index and the CSI 500 Index have seen declines of 1.07% and 0.06%, respectivelyNotably, the top ten funds in terms of net value growth have all been active equity funds, boasting increases of over 28%, with the highest reaching an impressive 46.61%.

This year has seen a continuous rise in the humanoid robotics sector, further fueled by the launch of DeepSeek, which has intensified investment enthusiasm in AIMany leading active equity funds are significantly invested in the robotics segment, allowing them to capitalize on these emerging opportunities.

Brokerage firms have noted that in the fourth quarter of last year, public funds increased their stakes in innovation-driven development sectors, particularly favoring the electronics industry, which highlights a pronounced growth-driven characteristic within the tech sphereThe top 20 stocks experiencing the most growth in market value were predominantly in the electronic sector, generating a strong foundation for multiple funds’ stellar performances.

For instance, concerning humanoid robotics, Li Haoxuan, a fund manager at Puyin Ansheng’s high-end equipment fund, pointed out that from an industrial perspective, the performance of their product has significantly improved within just a few monthsThey have experienced notable advancements in dexterous handling and functional versatilityConcurrently, both domestic and international tech giants are entering this industry, clarifying the sector's upward trajectory, while governmental support continues to strengthenIn the future, he plans to strategically focus on core products aligned with these industry trends, filtering out short-term market fluctuations.

Guoxin Securities has remarked that traditionally, public funds have leaned towards high-growth, high-prosperity investment methodologies

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The trajectory of prosperity investment indices typically parallels the performance of actively managed stock fundsHowever, in recent years, active equity funds have faced ongoing performance challenges as industry prosperity begins to declineFor example, it is anticipated that in 2024 these funds may underperform major stock indices due to their high-prosperity focus, which may not have capitalized on a year of favorable returns and the dual-driven growth of technology.

The shift in market conditions is a crucial factor determining the potential revitalization of active fundsIf the market transitions from a concentration in leading stocks toward more diversified investment opportunities, it will create more chances for active equity funds that excel in identifying individual stock value to generate excess returns, noted Wang Yi, an investment researcher at Jinzhang Investment, under Guoxia Wealth Management.

The Synergistic Development of Active and Passive Investments

Recently, investor acceptance of active equity funds has shown promising recovery, with index funds serving as a significant source of incremental capital in the marketExperts believe that active and passive funds represent the two fundamental pillars of public equity investment, where the former seeks to uncover alpha and create excess returns, while the latter provides an efficient and convenient investment mechanismTogether, both will play a pivotal role in driving the advancement of public equity investment operations.

There is a pressing need to accelerate the establishment of a collaborative relationship between active and passive investments in the public fund industry, enhancing mutual developmentThis includes reinforcing the asset allocation function of index funds and steadily improving long-term investor returns, aiming to provide a smoother pathway for long-term funds to enter the marketThis initiative will help cultivate a “long-term investment” ecosystem within the capital markets, bolstering rational and mature long-term investment capabilities.

According to Choice, nearly 80% of the funds scheduled for new release in February are equity funds, with 14 being active funds and 24 passive funds

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