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

Our reporter Peng Yansong

Wind Information data shows that as of February 23, a total of 481 funds that posted negative returns last year have achieved positive net value growth this year. Among them, 19 funds have net value growth rate differences exceeding 20 percentage points. In terms of product types, primarily 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 are characterized by stable operation and low volatility. Previously, negative returns were mainly affected by market interest rate fluctuations and liquidity, which are stage-specific factors,” said Yang Delong, Chief Economist at Qianhai Kaiyuan Fund, in an interview with Securities Daily. “As the bond market environment recovers, these products leverage duration allocation and coupon income advantages, with net values quickly returning 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. As of 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 “preferred” 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 a scale below 1 billion yuan.

Yang Delong noted 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’s 2025 quarterly report shows that in the fourth quarter of last year, the fund reduced its holdings in the AI application sector and increased positions in new energy midstream equipment companies such as Oriental Cable and Haili Wind Power. Wind data indicates 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 PaiPai Network in Shenzhen, said, “The advantage of ‘high turnover + strong rotation’ is that once the sector timing is accurate, the return amplification effect is significant. However, the risk is also prominent, as large position adjustments can lead to ‘big gains or big losses.’”

朱润康 pointed out 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 return list” to the “loss list.” Investors should view such funds’ “short-term turnaround” rationally. Those with high risk tolerance and acceptance of high volatility may consider monitoring such funds’ allocations to high-growth sectors; investors preferring stable 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, cautious allocation is advised.