Core Viewpoint - The public fund issuance market is experiencing a revival in early 2026, driven by multiple favorable factors including market conditions, policies, and investor demand, with a notable focus on equity and mixed FOF funds [1][9]. Fund Issuance Overview - As of January 25, 2026, a total of 76 new funds were established, with a combined issuance scale of 719.39 billion, averaging approximately 9.47 billion per fund, marking the second-highest average monthly issuance since January 2025 [2][8]. - The main contributors to the issuance in January are equity funds and mixed FOFs, with equity funds accounting for 60% of the total issuance scale [8]. Popular Fund Types - Active management funds are particularly popular, with 13 funds exceeding 20 billion in issuance, including 6 equity mixed funds and 3 mixed FOFs [1][4]. - The 富国智汇稳健 FOF raised 41.90 billion in just three days, highlighting strong investor interest in mixed FOF products [3][4]. Market Dynamics - The revival in fund issuance is attributed to a combination of structural market trends, regulatory support, and a low-interest-rate environment, which has led to increased allocation of long-term funds into equity assets [9]. - Fund companies are focusing on technology and innovation sectors, aligning their offerings with diverse investor needs [9]. Ongoing Fund Issuance - Currently, 94 funds are in the issuance process, with equity funds making up approximately 63% of the total, indicating a shift towards equity products compared to previous years [11]. - The ongoing issuance includes a variety of thematic funds covering sectors such as cloud computing, renewable energy, and artificial intelligence [11][12]. Investment Strategies - Fund companies are adopting a diversified asset allocation strategy, potentially increasing exposure to cyclical and dividend assets [13].

Core Insights - The FOF (Fund of Funds) market is experiencing a resurgence, with significant fundraising activity observed at the beginning of 2026, indicating strong demand for asset allocation products [1][13] - The total scale of FOF funds reached 2,442.92 billion yuan as of January 14, 2026, marking a steady increase from the end of 2025 and a significant growth compared to 2024 [14][15] - The issuance of new FOF funds is robust, with 23 funds expected to open for subscription in January 2026, reflecting a shift towards more stable investment strategies [3][15] Fundraising Activity - On January 5, 2026, Wanji Fund's FOF raised 2.099 billion yuan in a single day, while GF Fund's FOF raised 3.288 billion yuan in just two days [1][14] - By January 16, 2026, four newly established FOF products had collectively raised over 6 billion yuan, accounting for approximately 30% of the total new fund issuance during the same period [1][15] Market Growth - The FOF market has seen a continuous growth trend, with a 79.03% increase in scale in 2025 and a further 2.48% growth in early 2026 [14][15] - The total number of FOF funds reached 2,241.01 million shares, with a year-on-year growth of approximately 65% in 2025 [15] Product Structure - The FOF market is predominantly composed of mixed-asset FOFs, which account for 91.75% of the total scale, catering to various risk preferences [16] - Major fund managers like E Fund, GF Fund, and others have established a significant presence in the mixed-asset FOF space, with several products exceeding 10 billion yuan in scale [16] Distribution Channels - The resurgence in FOF popularity is closely linked to the support from banking channels, particularly the customized FOF offerings from banks like China Merchants Bank [5][17] - The "TREE Long-term Profit Plan" launched by China Merchants Bank has significantly boosted FOF scale, with over 10 million clients participating by the end of 2024 [5][17] Investment Strategies - FOF products are increasingly adopting passive investment strategies, focusing on index-based investments through ETFs, while also diversifying into multiple asset classes such as gold and REITs [16] - The average return of FOFs in 2025 was nearly 15%, which has positively influenced investor confidence [9][17] Market Dynamics - The current FOF sales surge is partly driven by sales efforts rather than purely organic demand from clients, indicating a potential reliance on marketing strategies [19] - Investors are advised to prioritize diversified FOFs that align with their risk preferences and investment goals, emphasizing the importance of long-term holding for compounding returns [19][20]