Core Viewpoint - The article discusses the challenges faced by fund companies in the current market, particularly the backlash from excessive focus on attracting flow and the performance issues of popular thematic funds, especially in the AI sector [4][9]. Group 1: Fund Performance Issues - The performance of the Qianhai Kaiyuan Artificial Intelligence fund has been poor, with a return of -4.15% in 2025, ranking 2242 out of 2274 in its category, and a return of -13.97% in 2026, ranking 2344 out of 2347 [5]. - Other previously high-performing thematic funds, such as Yongying Technology and AVIC Opportunity, have also seen significant declines in performance, with returns of -0.93% and 2.02% respectively in 2026, compared to their previous returns of 233% and 167% [6]. - The Penghua Technology Driven fund, managed by Yan Siqian, has experienced a drastic drop in performance, with a return of -17.17% in 2026 after achieving a 47% return the previous year [6]. Group 2: Flow and Regulatory Challenges - The National Investment Ruijin faced a compensation issue due to valuation adjustments of its silver futures LOF fund, with estimated compensation reaching 431 million yuan, which could consume most of its profits for the year [7]. - Debon Fund encountered regulatory scrutiny for collaborating with unqualified internet influencers for marketing, leading to a suspension of new fund issuance and accountability for senior management [8]. - The article highlights that the desire for flow has led to various issues, including regulatory penalties and reputational damage for fund companies [9][19]. Group 3: Shift in Fund Strategies - Fund companies are shifting from promoting star fund managers to adopting a more tool-oriented product strategy in response to market conditions [10][13]. - The rise of tool-based products, such as ETFs and actively managed funds focusing on specific sectors, is seen as a way to attract investors while managing flow-related pressures [13][15]. - The article notes that while tool-based products can provide flexibility and attract investment, they also carry higher volatility and risk, especially in fluctuating market conditions [20][21]. Group 4: Potential Crisis and Recommendations - The article warns of a potential crisis stemming from the high volatility of tool-based products and the influx of inexperienced investors, which could lead to reputational damage and increased complaints for fund companies [20][21]. - It suggests that fund companies should not only embrace flow but also ensure compliance and professional marketing strategies to mitigate risks associated with rapid growth [25][26]. - Recommendations include proactive communication of product performance and risks, as well as educational outreach to investors to improve understanding and reduce misalignment of expectations [26].