Zhong Guo Zheng Quan Bao·2025-11-18 20:05Core Insights - The number of public fund products (excluding asset management plans) that have been liquidated this year is approaching 200, with periodic open and holding period funds being the main contributors, accounting for over 40% of the total liquidated funds [1][2] - The design of holding period funds aimed to reduce friction costs from investors' frequent trading, but many of these funds were launched at market peaks, leading to poor investment experiences for investors [1][5] - The survival space for actively managed equity funds is being increasingly squeezed due to the rapid growth of index investing, with over 70 actively managed equity funds liquidated this year, making up nearly 40% of the total liquidated funds [1][2] Fund Liquidation Trends - As of November 18, nearly 200 public funds have been liquidated this year, a decrease compared to the same period last year [1] - Among the liquidated funds, over 70 are actively managed equity funds, including various types such as mixed equity, flexible allocation, and balanced funds [2] - The majority of liquidated funds are periodic open and holding period funds, with over 30 FOF products also included in this category [2] Shrinking Fund Sizes - In the third quarter, the total number of holding period fund shares decreased by nearly 800 billion, with mixed equity holding period funds seeing a reduction of over 600 billion shares [3][4] - Specific funds like E Fund Quality Momentum and others experienced significant share reductions, with some losing over 50 billion shares [4] - Despite the overall decline, certain categories like "fixed income+" and FOF funds saw growth in their share sizes [4] Considerations for Investors - Holding period funds require careful consideration of liquidity risks, as they restrict redemption while allowing for purchases, which may not suit investors seeking flexibility [6] - The initial intent of holding period funds was to help investors avoid frequent trading, but market conditions and fund management capabilities significantly impact actual investment returns [5][6] - Investors are advised to evaluate the fundamental aspects of holding period funds, including the experience of the research team, investment processes, historical performance, and fee structures before investing [6]