The landscape of equity funds has shown remarkable signs of recovery in 2023, registering a considerable uptick in performance as of mid-FebruaryReports indicate that a staggering 90% of the top ten performing equity funds fall within the realm of actively managed fundsThis resurgence is attributed to an assortment of positive economic indicators, leading to a notable shift in investor sentimentAs domestic hotspots of investment begin to multiply, the market presents increasingly prominent structural opportunities, thereby granting active management funds a substantial operational advantage.

Recent data from Choice indicates that over 400 actively managed equity funds have achieved net value increases surpassing 10% since the onset of the yearStandouts include Penghua Carbon Neutral Theme Mixed Fund A and Yongying Advanced Manufacturing Smart Selection Mixed Fund A, whose net values have surged by 47.53% and 45.9%, respectivelySeveral other funds, such as Ping An Advanced Manufacturing Theme Stock Fund A and China Aviation Trend Pioneer Mixed Fund A, have also noted increases beyond 30%.

Furthermore, numerous actively managed funds have reached all-time highs in their net values this yearNotable mentions include Galaxy Technology Growth Mixed Fund A and Puyin Ansheng High-end Equipment Mixed Fund A, affirming the mounting success within this fund category.

Interestingly, among the top ten performing equity funds as of February 18, all but one—the Fuquan CSI Hong Kong Stock Connect Internet ETF—are actively managed productsThis dominance highlights a pronounced trend toward active management in a competitive market environment.

An examination of the holdings disclosed in the 2024 Q4 reports reveals that the best-performing actively managed equity funds have predominantly focused investments in sectors such as artificial intelligence and roboticsFor instance, as of the end of last year, the top ten holdings of the Penghua Carbon Neutral Theme Mixed Fund A included notable stocks in the humanoid robotics sector, with an impressive surge in stock prices for companies like Zhongjian Technology and Wuzhou Xinchun, which soared by 83.85% and 75.15% respectively since 2025.

Fund manager Zhang Lu from Yongying Advanced Manufacturing Smart Selection Mixed Fund A emphasized the importance of focusing on quality companies within the humanoid robotics supply chain, especially those boasting technological moats and substantial market value as mass production of humanoid robots approaches.

The surge in structural opportunities in the market in recent years can be linked to the meteoric rise of passive investments, which have seen equity ETFs reach unprecedented scales

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Notably, by 2024, the market capitalization held by passive index funds in the A-share market eclipsed that of actively managed equity funds for the first timeHowever, multiple fund managers maintain that the market conditions leading into 2025 are favorable for active fund management, offering the potential to secure higher excess returns.

Dan Bailing, a fund manager from Huian Fund Industry Theme Group, predicts that as the A-share market transitions from a broad-based rally to a more differentiated performance, the abundance of structural opportunities will present active management funds with greater maneuvering capacity.

In contrast to passive index tracking, the inherent flexibility of actively managed funds in volatile market conditions enhances their selection capabilitiesFund managers have the opportunity to conduct in-depth analyses of market trends and economic cycles, allowing for the meticulous selection of high-performance stocks based on comparative value, and flexible adjustments to investment strategies and portfoliosThis diversification and stock-picking approach could yield significant investment opportunities in the current climate.

Furthermore, according to Zhou Wenqun, Deputy Director of the Equity Department at Fidelity Investments, the A-share market remains a fertile ground for active investmentFrom a valuation standpoint, A-shares are relatively inexpensive at this juncture, presenting ample potential for unexpected opportunities as the market continuously evolves through cyclical shifts and pronounced fluctuations.

One prominent fund manager, Zhai Xiangdong of the China Merchants Advantage Enterprises Mixed Fund, has long sought to achieve sustainable excess returns in managing large-cap fundsLooking forward to 2025, he intends to focus on macro trends, policy directives—especially those related to new productivity—and shifts in technology and industry, particularly in rapidly evolving fields like AI, to identify lucrative investment opportunities.

This collective optimism surrounding actively managed equity funds stems from an increasingly complex market environment where adaptability and informed decision-making are paramount

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