481 funds that posted losses last year have turned profitable this year

Author: Peng Yansong

Wind Information data shows that as of February 23, this year, 481 funds that had negative returns last year have achieved positive net value growth rates. Among them, 19 funds have net value growth rate differences exceeding 20 percentage points. In terms of product types, mainly medium- to long-term pure bond funds and equity-biased hybrid funds, with 275 and 51 funds respectively, accounting for 57.1% and 10.6% of the total 481 funds.

“Medium- to long-term pure bond funds focus on stable operation and low volatility. Previously, negative returns were mainly affected by market interest rate fluctuations and liquidity factors during certain phases,” said Yang Delong, Chief Economist at Qianhai Open Source Fund, in an interview with Securities Daily. “As the bond market environment recovers, these products leverage duration allocation and coupon income advantages, allowing net value to quickly return to positive growth. The certainty of recovery is significantly higher than that of equity products.”

Regarding equity-biased hybrid funds, these products have flexible stock positions. By the end of last year, the 51 such funds had an average stock allocation of 88%, providing fund managers with operational space to quickly switch sectors.

Looking at the names of “performance-reversal” funds, words like “strategy,” “value,” and “selection” frequently appear. These names typically correspond to “top-down sector selection and bottom-up stock picking” high-rotation strategies.

Additionally, most “performance-reversal” funds are small- to medium-sized products. Data shows that among the 19 funds with a return difference exceeding 20 percentage points, 15 have sizes below 1 billion yuan.

Yang Delong said that small- and medium-sized funds have higher flexibility in rebalancing. In sectors with limited capacity such as precious metals and niche manufacturing, they can quickly build positions and amplify gains. This is also a key advantage in accurately capturing structural opportunities.

Combining the 2025 quarterly reports and position change data of these funds, the rebalancing paths of “performance-reversal” funds are clearly visible. The core logic is “high turnover + strong rotation.” For example, the Golden Eagle Transformation Power Hybrid Fund, according to its 2025 quarterly report, reduced holdings in the AI application sector in Q4 last year and increased positions in new energy midstream equipment companies like Dongfang Cable and Haili Wind Power. Wind data shows that as of February 23, the fund’s net value growth rate shifted from last year’s -9.56% to a year-to-date increase of 25.93%.

朱润康, a public fund product manager at Qianhai PaiPaiNet Fund Sales Co., Ltd., stated, “The advantage of ‘high turnover + strong rotation’ is that once the sector rhythm is accurately timed, the return amplification effect is significant. However, the risk is also prominent, as large position adjustments can lead to big gains or losses.”

朱润康 noted that high-turnover strategies demand extremely high industry judgment and timing skills from fund managers. If sector switching is misjudged later, the fund could quickly fall from the “top of the performance list” to the “loss list.” Investors should view these funds’ “short-term turnaround” rationally. Those with high risk tolerance and acceptance of high volatility may consider focusing on such funds’ allocations to high-growth sectors; investors preferring steady returns should be cautious of “chasing gains” risks.

朱润康 suggested that investors can track rebalancing directions through regular fund reports. If a fund consistently achieves precise sector switching, it can be seen as a validation of its strategy; otherwise, caution is advised in allocation.

(Edited by: Xu Nannan)

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