Active equity funds will collectively profit over 1 trillion yuan by 2025.

Compared with passive index funds, active equity funds place greater emphasis on research and selection of high-quality companies and sectors, and aim to achieve higher returns through proactive investment operations. With the disclosure of the 2025 annual reports of public funds completed, the operational performance of active equity funds in 2025 has officially been revealed.

Data compiled by Tianxiang Investment Consulting and Advisory shows that, as of the end of 2025, active equity funds (including aggressive investment stock funds, stock-biased hybrid funds, and flexible allocation hybrid funds) had a combined size of RMB 3.90 trillion, up about 15% from RMB 3.39 trillion at the end of 2024. Looking at the details, stock-biased hybrid funds have the largest scale, at RMB 39k, accounting for 61.57% of the active equity funds’ total size; flexible allocation hybrid funds come next, at RMB 33.9k, accounting for 23.89%; aggressive investment stock funds have a scale of RMB 5,672.80 billion, accounting for 14.54%.

In terms of profitability, in 2025, active equity funds’ total profit amounted to RMB 1,001.64 billion. Among them, stock-biased hybrid funds, flexible allocation hybrid funds, and aggressive investment stock funds recorded profits of RMB 628.77 billion, RMB 224.72 billion, and RMB 147.68 billion, respectively.

Some active equity funds have provided investors with relatively strong holding experiences. For example, in the category of active equity funds, E Fund ranks among the top in terms of profits, with RMB 80.92 billion; followed closely by Central Europe Fund, Fullgoal Fund, Harvest Fund, GF Fund, and Huaxia Fund, with RMB 62.38 billion, RMB 53.31 billion, RMB 46.98 billion, RMB 44.53 billion, and RMB 35.27 billion, respectively.

With the profitability scorecard already out, investors should pay even more attention to portfolio changes. By looking at the allocation of top industries and top holdings of active equity funds in 2025, one can clearly see fund managers’ investment mainlines and sector preferences.

Data from Tianxiang Investment Consulting and Advisory shows that, categorized by Shenwan Level-One industries, the top ten industries in terms of holdings by active equity funds are Electronics, Electric Power Equipment, Pharmaceuticals & Biologics, Communications, Non-ferrous Metals, Machinery & Equipment, Automobiles, Basic Chemical Industry, Food & Beverages, and Non-bank Financials. From the top ten heavily held stocks of active equity funds, Jichuangxuchuang tops the list consecutively, Xin Yisheng ranks second, and CATL ranks third.

Regarding changes in holdings, the top three stocks by增持 (increased market value) among active equity funds are Jichuangxuchuang, Xin Yisheng, and Dongshan Precision; the top three stocks by减持 (reduced market value) are Midea Group, BYD, and Wuliangye Yibin. Judging from the performance by percentage change in 2025, all of the top 10 stocks by increased market value achieved gains, while the top 10 stocks by reduced market value saw declines to varying degrees.

The performance of active equity funds is also affected by the trend of the equity market. In recent times, volatility in the equity market has increased. However, according to interviewed parties, the stabilization-and-correction phase has not changed the market’s underlying long-term positive fundamentals, and structural opportunities are still worth seizing.

A related person at Industrial Bank Fund told reporters from The Securities Daily: “For China’s A-share market, the domestic liquidity environment is still relatively good, and the background that the absolute level of the risk-free interest rate is low has not changed fundamentally. Against the backdrop of profound changes in the global landscape, Chinese assets still have long-term allocation value. At the same time, the pace of technological development represented by AI is still advancing, and its strategic importance remains significant. Under the background of supply-chain security, the pace of domestic substitution in many key segments is expected to further accelerate. In the short term, investors may focus on equity assets with relatively high certainty.”

Morgan Stanley Fund’s equity investment team told reporters from The Securities Daily: “Against the backdrop of significant changes in the global landscape, investors may no longer be worn out by trading short-term event-driven changes, but instead shift their focus to medium- and long-term clues. For example, global attention to energy diversification and green energy will increase significantly. The key directions include areas such as new energy, nuclear power, and the coordination of computing and power generation, among others.”

(Editor: Xu Nannan)

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