Key areas for mutual funds to make money in 2025

　　Recently, many public fund companies have successively held 2025 investment strategy meetings or released 2025 investment strategies. Overall, public funds have a relatively positive view of the A-share market in 2025. After policy expectations are fulfilled and corporate performance bottoms out and rebounds, the future equity market will be relatively attractive.

　　Public funds will focus on technology, consumption, and other sectors in 2025, especially subsectors such as low-altitude economy, artificial intelligence, autonomous driving, and robotics.

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Development Trend of Public Funds

　　As of December 25, there are 6 funds (only counting the fund main code, the same below) with a return of more than 50% so far this year, 46 funds with a return between 40% and 50% so far this year, and 873 funds with a return of more than 20% so far this year.

　　Morgan Stanley Digital Economy A has a return rate of 72.57% so far this year, ranking first in the fund performance ranking, and its performance is far ahead of ICBC Emerging Manufacturing A, which ranks second.

　　On a macro level, Wang Yong, Chief Asset Allocation Officer and General Manager of Pension and Asset Allocation Department of Invesco Great Wall, said that the debt reduction plan has been introduced, and with the stabilization measures such as the reduction of down payment ratio, mortgage interest rate, and tax incentives, the two key contradictions of economic development, local debt risk and real estate, are expected to be substantially resolved.

　　At the same time, in addition to increasing the stimulus of domestic demand on the demand side, the supply side will also introduce policies to prevent excessive competition in the industry, including the withdrawal mechanism of inefficient production capacity, energy-saving, and carbon reduction plans, etc., which will help improve the price level.

　　In terms of funds, China Europe Fund expects that ETFs will receive a net inflow of more than 600 billion yuan in 2025, and 400 billion yuan of insurance funds may flow into the A-share market.

The equity market becomes more attractive.

Focus on technology and consumer sectors.

　　Morningstar believes that there is still ample room for Chinese assets to rise in the future, and maintains strong confidence in its medium- and long-term performance. Zhu Hongyu, chief research officer of China Merchants Fund, believes that the equity market is likely to turn to stable earnings and moderate valuation expansion in 2025.

　　China Europe Fund believes that in the long run, the A-share market contains many structural opportunities, especially in the fields of technological innovation and mass consumption.

　　Yu Liyong, chief allocation officer of China Merchants Fund, said that the A-share earnings cycle showed signs of bottoming out, positive policy expectations supported market risk appetite, and the market may fluctuate upward in 2025.

　　Zheng Zheng suggested that the asset allocation ranking in 2025 should be “stocks > bonds > commodities (mainly gold)”. The core strategy is to build a stable asset base by allocating bonds while actively managing equity assets.

　　Zhu Hongyu said that in high ROE sectors such as consumption, resources, and utilities, we should look for opportunities for reasonable valuation and pricing of high-quality companies with stable business models and high barriers.

　　In growth sectors such as midstream manufacturing, healthcare, and information technology, we should pay attention to investment opportunities for valuation and profit double-clicks brought about by the turning point of the operating cycle and product technology upgrades. In 2025, we should pay close attention to sectors related to domestic demand and seize investment opportunities from the two aspects of certainty and valuation repair space.

　　Industries and sectors that have received fiscal support, such as military industry, commercial aerospace, medical equipment, low-altitude economy, fertility support, equipment upgrades, and renovations, as well as sub-sectors such as artificial intelligence (AI) applications, autonomous driving, robots, and new energy industries that have future potential in the technology growth industry are also worthy of attention.