Core Viewpoint - The article discusses the performance of actively managed equity funds in the Chinese stock market, highlighting the emergence of new "bull funds" and the fading glory of past top-performing funds, emphasizing the need for a shift towards long-term investment strategies and stable fund management practices [1][9]. Group 1: Performance of Active Equity Funds - As of December 22, the Shanghai Composite Index has increased by 12.67% in 2024, with an additional 16.87% rise for the year, indicating a likely two consecutive years of gains [1]. - Nearly 40 actively managed equity funds have doubled their annual returns, with Yongying Technology Smart Selection A achieving approximately 219% annual return, marking it as the first "double fund" since 2008 [1]. - Historical analysis shows that only 5 out of 30 top-performing funds from previous bull markets have maintained strong performance, while the majority have returned to mediocre status [2]. Group 2: Reasons for Declining Performance of Past "Bull Funds" - Many former "bull funds" have lost their luster due to excessive growth in fund size, which hampers investment flexibility and increases transaction costs [4]. - Over-reliance on a single star fund manager has led to significant performance declines when key personnel leave or fail to adapt to market changes [5]. - Short holding periods and frequent style shifts have also contributed to the underperformance of many funds, as they chase short-term trends without a stable investment framework [6]. Group 3: Structural Changes in the Fund Industry - The public fund industry is undergoing a structural transformation, moving from a short-term ranking focus to a value investment approach aimed at achieving stable returns [7]. - Successful long-term funds are characterized by stable research teams, strong risk control capabilities, and robust company support systems [8]. - The industry is exploring new active investment models, integrating industrialized concepts into research processes to enhance efficiency [8]. Group 4: Long-Term Investment Philosophy - The fate of past "bull funds" reflects the evolution of the A-share market and the industry's changing development philosophy, emphasizing the importance of long-term investment strategies [9]. - Investors are encouraged to focus on funds with clear investment philosophies, stable teams, and proven cross-cycle capabilities rather than chasing annual performance champions [10]. - Funds that may not shine in a single bull market can still create value through solid strategies, rigorous research, and strict risk control [11].

Core Viewpoint - The article discusses the performance of actively managed equity funds in the context of the A-share market, highlighting the emergence of new "bull funds" and the fading glory of past top-performing funds, emphasizing the need for a shift from short-term performance to long-term investment strategies [1][11]. Group 1: Performance of Active Equity Funds - As of December 22, the Shanghai Composite Index has increased by 12.67% in 2024, with an annual increase of 16.87%, indicating a likely two-year consecutive rise in annual K-line [1]. - Nearly 40 actively managed equity funds have doubled their annual returns, with Yongying Technology Smart Selection A achieving approximately 219% annual return, marking it as the first "double fund" since 2008 [1]. - Historical analysis shows that only 5 out of 30 top-performing funds from previous bull markets have maintained strong performance, while 25 have returned to mediocre status [2]. Group 2: Reasons for Declining Performance of Former "Bull Funds" - Many former "bull funds" have lost their luster due to excessive scale growth, which reduces investment flexibility and increases transaction costs, making it harder to achieve excess returns [5][6]. - Over-reliance on a single star fund manager has led to significant performance drops when key personnel leave or fail to adapt to market changes [6]. - Short holding periods and frequent style shifts have hindered many funds from accumulating long-term returns, as they chase short-term trends without a stable investment framework [7]. Group 3: Structural Changes in the Fund Industry - The public fund industry is undergoing a structural transformation, moving from a "star-making" model focused on short-term rankings to a "systematic approach" that emphasizes value investing and stable returns [8][12]. - Successful long-term funds often have stable research teams and strong risk control capabilities, which help them navigate market downturns effectively [8][9]. - Companies are increasingly adopting innovative investment models and enhancing their research capabilities to adapt to market changes, indicating a shift towards a more collaborative and systematic investment approach [9]. Group 4: Long-term Investment Philosophy - The fate of past "bull funds" reflects the evolution of the A-share market and the investment philosophy of the industry, highlighting the importance of a stable investment strategy over reliance on individual fund managers [11]. - Investors are encouraged to focus on funds with clear investment philosophies, stable teams, and proven cross-cycle capabilities, rather than chasing annual performance champions [12].