Core Viewpoint - The scale of initiated funds in China has exceeded 3.2 trillion yuan, marking a significant growth in the number and size of these funds, which have become an important form for public offerings to innovate products [2][3][4]. Fund Growth and Market Dynamics - As of the end of Q2 this year, the number of initiated funds reached 2,268, a year-on-year increase of 20%, with a total management scale exceeding 3.2 trillion yuan, reflecting a 12% year-on-year growth [5]. - Initiated funds have been steadily growing since the establishment of the first initiated fund in 2012, becoming a key form for public offerings to innovate products [5]. - The current market environment has led fund companies to focus on "opportunity capture" when establishing initiated funds, aiming to quickly respond to market trends and enhance their product lines [11][12]. Product Structure and Index Funds - Index funds are the primary type of initiated funds, accounting for 54% of newly established initiated funds this year [7]. - The explosive growth of index-type initiated funds is driven by policy guidance and market demand, with regulatory bodies promoting an increase in index investment scale and proportion [8]. - The preference for lower-cost, transparent index funds has increased among investors, especially as the performance of actively managed equity products has declined [8][9]. Long-term Performance and Investor Engagement - Over 80% of actively managed initiated funds have achieved positive returns, with an annualized return rate of 9.17% since inception for 439 funds [15]. - The requirement for fund managers to invest their own capital and hold it for at least three years aligns their interests with those of investors, promoting a focus on long-term performance [16][12]. Challenges and Recommendations for Sustainable Development - The initiated fund model faces challenges such as performance differentiation and the prevalence of "mini funds," necessitating a multi-faceted approach to ensure sustainable development [14][19]. - Fund companies are advised to enhance their research capabilities, optimize product design, and strengthen marketing efforts to improve the attractiveness of initiated funds [20][21]. - It is recommended that fund managers exercise caution in launching initiated funds, avoiding trends that may lead to short-term gains and focusing on building a solid foundation for long-term success [20][21].