According to statistics, among the 92 active equity funds in China with assets exceeding 10 billion yuan, all have suffered losses in performance over the past three years, with the number decreasing by nearly 70%.
As reported by “First Financial”, as of June 26, there were a total of 3,163 active equity funds (including common stock funds, flexible allocation funds, equity-oriented hybrid funds, balanced hybrid funds – only considering initial funds) established for over three years, out of which 2,879 products have accumulated negative returns in the past three years, accounting for over 90%.
Among them, there are 92 active equity funds with assets exceeding 10 billion yuan. Data shows that as of June 26, all these products have incurred losses in the past three years, with an average decline of 40.86%. Among these, 53 products have suffered losses exceeding 40%, accounting for over half of them; while 23 products have experienced declines exceeding 50%.
In other words, if an investor bought any of these 10-billion-yuan level active equity funds around June 2021 and held onto it until now, they would have selected a “loss-making” product, with the difference lying in the extent of the losses. The probability of selecting a product with a performance “halved” or better is around a quarter.
Looking at specific products, only two products have experienced losses of less than 10%, namely Guangfa Trend Best Selection A and Guangfa Balanced Best Selection A, with accumulated returns of -0.9% and -5.73% respectively in the past three years. On the other hand, products such as Zhong Ou Medical Health A, Huatai Innovation Medicine, Guangfa Growth Selected A, Guangfa Medical Health A, and Fuguo Innovation Trends have all suffered interval declines of over 60%, ranging from 60.65% to 63.06%.
According to the mid-2021 data, the 92 active equity funds with assets exceeding 10 billion yuan had a total of 97.4093 million holders.
With declining performance and unsatisfactory investor holding experience, these 10-billion-yuan products have been gradually abandoned by investors. According to the 2023 annual report data, the number of holders of the aforementioned funds has decreased to 59.3828 million, a decrease of nearly 40%. At the same time, the fund sizes of these 10-billion-yuan products have been rapidly declining.
Wind data indicates that as of the end of the first quarter of this year, there are only 29 active equity funds on the market with a combined size exceeding 10 billion yuan, compared to 92 in the same period of 2021, marking a decrease of 68.48%. In other words, within three years, the number of active equity products exceeding 10 billion yuan has decreased by nearly 70%.
Currently, the largest active equity product in size is E Fund Blue Chip Selection, with the latest size being 41.144 billion yuan, a “halving” compared to the 88.016 billion yuan three years ago. This is also the only active equity product with a size exceeding 40 billion yuan.