"HK Stocks Down 7%, A-Shares Fall: Which Funds Rise Against the Trend?"

The Shanghai Composite Index fell by 4% this week, the Shenzhen Component Index fell by 4.4%, the CSI 300 Index fell by 4.2%, and the ChiNext Index fell by 3%. In other words, all A-share indices have declined comprehensively.

The Hong Kong Hang Seng Index has fallen for four consecutive weeks, with this week's drop reaching 6.17%.

Faced with such a decline, it is estimated that everyone's funds have fallen significantly. However, in the midst of such a sharp decline, some funds have actually risen.

Let's take a look at which funds performed the best this week.

01, Rising Equity Funds

The trend of A-shares in the past week can be divided into two segments.

The first segment was from Monday to Tuesday, until Wednesday morning, when major indices plummeted wildly. The second segment began with the rebound in the afternoon of Wednesday, followed by a slight decline on Thursday, and another deep decline on Friday before rebounding.

So, looking at the weekly line chart, all major indices are long-tailed bearish candlesticks.

However, it is unexpected that some funds actually rose against the trend this week, including some funds that everyone is paying attention to. In the past week, the average decline of equity funds was 3.55%, and a total of 33 funds achieved positive returns.

Perhaps no one would have expected that the group of funds at the forefront all share a common theme, which is medical-themed funds. Golden Eagle Medical Health, Changsheng Medical Industry, and Minsheng Jiayin Pharmaceutical Industry ranked at the forefront, with an increase of 1.5% to 2% in the past week.Not only has this week been good, but actually over the past month, these few funds have also seen decent gains, with increases ranging from 9% to 13%. It seems that after the significant decline in the early period, the healthcare funds have finally found the momentum to rise.

However, not all healthcare-themed funds have been able to rise, as the CSI Healthcare Index still fell by 2.66% over this week. The China Europe Healthcare Innovation, a stock-type fund managed by Ge Lan, also fell by 2.88% over the past week. Zhao Bei's ICBC Frontier Healthcare, which is also a stock-type fund, fell by 1% over the past week.

At the top of the weekly gain list is Golden Eagle Healthcare & Health, managed by fund manager Han Guangzhe. Although the performance of this fund he manages has been good over the past week and month, several other funds he manages have clearly experienced significant drawdowns.

Last year's star fund, Golden Eagle Ethnic Emerging, has fallen by 21% in the last three months, dropping to the 1882nd position among 2077 similar funds.

It appears that the best-performing stock-type funds over this week mainly relied on the rebound of the healthcare sector, and had little to do with the short-term performance and capabilities of the fund managers.

In addition to looking at the gain list, we can also take a look at the loss list.

Some stock-type funds have seen declines of over 8% over the past week. If everyone recalls the declines of the several indices mentioned earlier, it is certain that the Hang Seng Index's decline is much greater than that of several A-share indices.

Almost all of the funds at the forefront of the stock-type fund loss list are related to Hong Kong stock investments, including Taikang Hong Kong Stock Connect Consumer Goods, HSBC Jinxin Shanghai-Hong Kong-Shenzhen, and Chuangjin Hong Kong Stock Connect, all of which are primarily focused on Hong Kong stock investments.

02

Over the past week, among hybrid funds, a total of 107 funds achieved positive returns, with all the top ten funds achieving positive returns ranging from 2% to 4%.In contrast to the average decline of 2.5% for hybrid funds this week, the funds that have achieved positive returns are truly eye-catching. The top performer is the Xinhua Xinhong Flexible Allocation fund, which rose by 4.7% over the week.

However, it is important to note that when evaluating funds, one should not focus solely on short-term performance. For instance, this week's champion fund has ranked quite low in almost all quarters over the past eight quarters.

For funds that suddenly appear at the forefront, there are generally two possibilities. The first possibility is that the individual stocks in the portfolio have experienced a rapid increase during this period. However, we have found that this fund does not have a significant equity position.

Thus, there is a second possibility: the fund has encountered a massive redemption. Given the current situation, it is highly likely that the fund has faced a substantial redemption. At the end of last year, the fund's scale was only 0.92 billion, classifying it as a mini-fund.

Looking at the recent changes in net value, we observed that on March 4th, the fund's net value was 1.395 yuan, and by March 9th, the fund's net value had increased to 1.474 yuan. It is quite possible that the sudden surge in net value over these days is due to a large amount of capital redeeming the fund.

Among hybrid funds this week, those that truly invest in stocks have not yet achieved a return of 2% at the top of the list. The funds at the forefront of the weekly decline in hybrid funds are essentially the same as those in stock funds, with the largest batch of funds falling by more than 8% in just one week. The most severe decline was a Hong Kong Stock Connect fund from HSBC Jinxin, which fell by 12.3% over the past week. All of these funds with significant declines are related to the Hong Kong stock market.Summarizing the situation above, in the rapidly declining market over the past week, the ability to be relatively resistant to the decline, or even achieve positive returns, mainly comes from two themes. The first is the pharmaceutical theme, in which a small number of funds have achieved positive returns. However, most pharmaceutical-themed funds are still in negative territory, but they are relatively resistant to the decline, with the decline ranging from about 1% to 2%.

The other theme that has seen an increase comes from commodities, primarily gold.

If we are fortunate enough to have chosen these two types of funds, their performance over the past week has been quite good. But if we are not so lucky and happen to hold funds that are mainly focused on Hong Kong stocks, then the past week has been quite unfortunate.

However, for fund investments, short-term fluctuations are not very significant. As long as we hold them for the long term and can achieve the desired rate of return, that is sufficient.