Core Viewpoint - The A-share market has experienced a significant pullback after the National Day holiday, particularly in the dual innovation sector, which has raised questions about the performance of various fund products. Despite this, 24 domestic open-end funds have doubled their value year-to-date, with Yongying Technology Smart Selection A leading at a remarkable 196.69% increase [1][2]. Fund Performance - As of October 22, 2025, Yongying Technology Smart Selection A has achieved a year-to-date return of 196.69%, making it the top performer among active equity funds [2][6]. - The fund's performance has been particularly strong in the last six months, with a 207.18% increase, and 70.49% in the last three months [8][9]. Fund Management and Strategy - Yongying Technology Smart Selection A was established on October 30, 2024, and is managed by a relatively inexperienced fund manager, Ren Jie, who has less than one year of experience in this role [3][4]. - The fund focuses on high-growth potential sectors, particularly in cloud computing, and employs a high-concentration investment strategy, which can lead to significant volatility [4][5]. Investment Focus - The fund's strategy involves targeting strategic emerging industries, with a high allocation to selected stocks that are expected to perform well. This approach is akin to a high-stakes gamble, aiming for substantial returns but also carrying higher risks [4][15]. - The top 20 stocks in which the fund has invested heavily include notable companies in the technology sector, such as Xinyi Communication and Zhongji Xuchuang, reflecting a concentrated investment strategy [10][12]. Market Context - The fund's performance is set against a backdrop of a recovering A-share market, with the management team believing in a long-term positive trend. This has led to a shift in strategy towards more aggressive equity investments [5][19]. - Despite the potential for significant returns, the fund's high concentration in specific stocks means that it is also vulnerable to market corrections, particularly in the dual innovation sector [15][19].

Core Insights - Yongying Technology Smart Selection A and C funds achieved net value growth of 32.28% and 32.03% respectively in Q2, ranking third and fourth among equity mixed funds [1][2][3] - The top ten holdings of the funds were completely replaced in Q2, with increased allocation to industries such as optical modules and computing power, featuring stocks like Xinyi Sheng, Zhongji Xuchuang, and Tianfu Communication [1][3][4] Fund Performance - The funds outperformed their performance benchmarks significantly, with both A and C shares leading in their category [2][3] - Since inception, the funds have recorded a return of 76.22% as of July 11, attracting substantial market interest with net subscriptions of 53.8 million and 447.06 million shares for A and C respectively [4] Financial Metrics - Despite strong net value performance, the funds experienced a mismatch between realized gains and profits, with A and C recording realized losses of -720,800 and -4,233,400 yuan respectively, while profits were 19,551,100 and 171,682,200 yuan [5] - The realized gains reflect actual trading outcomes, while profits include both realized gains and fair value changes, indicating a significant unrealized gain component [5] Portfolio Management - The fund manager, Ren Jie, noted a high turnover in the portfolio, which may lead to increased trading costs and potential losses [6] - The strategy of frequent adjustments in holdings may lack stability, with analysts suggesting that such funds are better suited for satellite positions rather than core investments [6] Top Holdings - The top ten holdings for Yongying Technology Smart Selection in Q2 include: 1. Xinyi Sheng (300502) - 925,708 shares, fair value 117,583,430.16 yuan 2. Zhongji Xuchuang (300308) - 793,000 shares, fair value 115,666,980.00 yuan 3. Tianfu Communication (300394) - 1,377,480 shares, fair value 109,978,003.20 yuan 4. Shenghong Technology (300476) - 798,100 shares, fair value 107,248,678.00 yuan 5. Yuanjie Technology (688498) - 540,250 shares, fair value 105,348,750.00 yuan 6. Changxin Bochuang (300548) - 1,425,400 shares, fair value 95,173,958.00 yuan 7. Hudian Co. (002463) - 2,159,000 shares, fair value 91,930,220.00 yuan 8. Industrial Fulian (601138) - 3,725,000 shares, fair value 79,640,500.00 yuan 9. Taicheng Light (300570) - 823,300 shares, fair value 79,349,654.00 yuan 10. Shennan Circuit (002916) - 532,190 shares, fair value 57,375,403.90 yuan [7]