Core Viewpoint - The growth of fund scale in the pharmaceutical sector is increasingly influenced by product style clarity and predictable holdings, rather than just performance metrics [2][8]. Group 1: Fund Performance and Scale Dynamics - Despite having the highest performance, some pharmaceutical funds are experiencing significant scale growth challenges, with many funds seeing scale increases despite lower returns [2][3]. - As of November 2, 2025, the top-performing pharmaceutical fund achieved a return of 118% but had a scale of only approximately 530 million yuan, while other funds with lower returns had scales exceeding 2.4 billion yuan [3]. - The disparity in scale growth among similar funds managed by the same fund manager indicates that performance alone is not a sufficient driver for scale [5][6]. Group 2: Importance of Style and Transparency - The clarity of product style and transparency of holdings are becoming critical factors for investors when selecting funds, especially in a market with a wide variety of offerings [2][8]. - Funds that maintain stable styles and transparent holdings are more likely to attract investment, as investors prefer predictable products in a segmented market [8][9]. - Frequent changes in fund holdings can negatively impact scale growth, highlighting the importance of consistent investment strategies [8][9]. Group 3: Case Studies of Fund Managers - Fund managers with similar holdings and performance levels can see vastly different scales, as evidenced by the comparison between two funds managed by the same manager, where one fund had a scale of 2.45 billion yuan and the other 41.52 billion yuan despite differing performance [6][7]. - The lack of mandatory investment scope in fund contracts can hinder scale growth for high-performing funds, as seen with the "champion pharmaceutical fund" that did not have a strict mandate to invest solely in the pharmaceutical sector [4][8].

Core Insights - The investment selection process among investors has become more rigorous, with a preference for products that exhibit clear styles and predictable holdings [1][3] - Despite high returns, some high-yield products struggle to attract capital, indicating a shift in investor focus towards stability and transparency [1][3] Group 1: Fund Performance and Capital Inflows - A significant amount of capital has flowed into the pharmaceutical fund sector in Q3 2023, with many funds exceeding 1 billion yuan in size, driven by strong performance [1] - The top-performing pharmaceutical fund from a leading public fund achieved a return of 118% year-to-date, yet its size remains only about 530 million yuan [1] - Other funds with lower returns, such as the Bank of China Hong Kong Stock Connect Pharmaceutical Fund, have larger sizes, indicating a disconnect between performance and capital attraction [1] Group 2: Manager Performance and Fund Size Discrepancies - Similar funds managed by star fund managers show stark differences in capital size despite similar performance, highlighting investor preferences [2] - For instance, the Ping An Core Advantage Fund has a return of 75% but only 245 million yuan in size, while the Ping An Medical Health Fund, with a lower return of 67%, has grown to 4.152 billion yuan [2] - This trend is also seen with manager Zhao Bei, where the better-performing fund has a size of less than 400 million yuan, while the underperforming fund exceeds 10 billion yuan [2] Group 3: Investor Preferences and Market Trends - Investors are increasingly favoring funds with stable styles and transparent holdings, leading to a surge in index fund popularity due to their predictability [3] - The public fund industry is experiencing a diversification of product offerings, with a rapid increase in segmented and scenario-based demands [3] - Predictability in fund holdings has become a key factor for attracting capital, often outweighing performance metrics [3]