Since August, 39 equity funds have rebounded by more than 30%.

In the final stretch of the third quarter, the most notable feature of the equity market is heightened volatility. The stock market saw a sharp decline in July, but entering August and September, some sub-sectors of the technology sector staged a sharp rebound from oversold levels, and many fund products seized the opportunity to achieve net value recovery.

According to Choice data, from August 1 to September 24, the interval return of Xinhua Strategy Select Equity A reached 47.63%, ranking first among all equity funds in the entire market. This product plummeted 38.75% in July. After the rebound since August, its decline in the third quarter has narrowed to 9.57%.

Since the beginning of August, a total of 4 active equity funds have rebounded by more than 40%, and 39 active equity products have rebounded by more than 30%. Most of these strongly rebounding products are heavily positioned in AI sub-sectors such as optical modules and computing power hardware. During the market correction in July, the fund managers of these products did not panic and reduce their positions, thus seizing the subsequent oversold rebound market to realize net value recovery.

Industry insiders also remind that these funds have strong short-term explosive power but also high volatility. Investors should consider their own volatility tolerance before investing, and never blindly chase high prices.

An equity product has rebounded by a massive 47% since early August

According to Choice data, from August 1 to September 24, the interval return of Xinhua Strategy Select Equity A was 47.63%, ranking first among all equity funds in the entire market. In July this year, the product fell by 38.75%, but with the rapid rebound since August, its decline in the third quarter as of September 24 has narrowed to 9.57%, showing a clear net value recovery. Looking at the longer term, the product's year-to-date return as of September 24 reached 81.72%, delivering outstanding performance.

This product has been managed by senior fund manager Zhao Qiang since 2017, and Wang Yongming was added as co-manager of the product on August 17 this year. Zhao Qiang then resigned on August 21, making the product solely managed by Wang Yongming.

Zhao Qiang is a rare fund manager in the market with an annualized return of 20% over ten years. According to Wind data, as of August 21, Zhao Qiang has 10.42 years of industry experience, with an annualized return of as high as 20.81% during his tenure.

In the first half of this year, while allocating to high-elasticity sectors such as optical devices, optical connections, liquid cooling, and power supplies, Zhao Qiang also allocated some new consumer, pharmaceutical and manufacturing companies. Zhao Qiang believes that 2026 may still see a slow bull pattern, but stock selection will become more difficult, and the market may also experience greater volatility. Many sectors need to "subtract", that is, to select individual stocks with definite performance support.

It is also worth noting that after the fund manager was replaced, the performance of the product remains at the top tier. According to data from TianTian Fund, as of September 24, Wang Yongming's return since taking office was 11.23%, ranking 3rd among 6487 similar funds.

39 active equity funds have rebounded by more than 30%

In addition to Xinhua Strategy Select Equity A, many other active equity fund products have seized structural opportunities to achieve rapid net value rebound.

According to Choice data, between August 1 and September 24, 4 active equity funds posted returns of over 40%, 39 active equity funds posted returns of over 30%, and 168 active equity funds posted returns of over 20%.

It is worth noting that among the top 10 products with the largest rebound since early August, 3 products under Xinhua Fund are included. In addition to Xinhua Strategy Select Equity A, there are also Xinhua Preferred Dividend Hybrid A and Xinhua Trend Pilot Hybrid. All three products were previously managed by Zhao Qiang, and after Zhao Qiang's resignation on August 21, they became products solely managed by other fund managers, and all successors have achieved positive returns since taking office.

In addition, Caitong Technology Innovation Hybrid A managed by Yuan Zeqiang, and Qianhai Kaiyuan Emerging Industry Hybrid A co-managed by Cui Chenlong and Liang Ce, have respectively achieved returns of 39.80% and 39.60% since early August, approaching the 40% threshold.

A senior public fund investment and research professional told reporters, "Most of these products that have staged a massive rebound are heavily positioned in sub-sectors of the AI industrial chain such as optical modules and computing power hardware. During the sharp market correction in July, these funds did not panic and reduce their positions at low points, thus seizing the opportunity to achieve a certain degree of net value recovery in the oversold rebound market since August."

The person also added, "The prosperity of the AI sub-industry remains, and the fluctuations of related sectors are mostly caused by macro disturbances. It is precisely because of the continued optimism about the future growth space of the sector that many fund managers did not choose to reduce their positions at the emotional low point in July. This round of market in the third quarter is essentially an oversold rebound. Entering the fourth quarter, with the successive release of the three quarterly reports, if the performance of core targets can exceed expectations, the related sectors may still have room for further rebound."

However, industry insiders also emphasized that for ordinary investors, in the face of such funds with extremely strong short-term explosive power, it is necessary to fully recognize the volatility of the products, and avoid blindly chasing high prices. If you have already allocated such products with high volatility, you can also choose to extend the holding period according to your own situation, and avoid chasing up and selling down blindly.

This article is from the WeChat Official Account "ChiNext Observer", Author: Li Di, published with authorization from 36Kr.