GUANGZHOU (Fund China) – There are 26 equity funds setting up new net value records, with mostly investing in the the small and medium cap stocks. The experts said, it is not good for investors paying full attention to the big cap fund. “Are your funds’ net value gainning?” most of the investors are more and more concerning about their funds which can have the same or better performance or not as more and more small & medium Cap stocks are continuing to set up new records.

According to the latest fund company announced net value statistics (up to last Friday), there are 26 equity funds(including shares fund and the active allocation funds) net values are more than the October 16, 2007’s.

The big cap reached a highest record 6124.04 at Oct. 16,2007 along with the equity funds gained the highest net value growth at the same day due to most of the equity funds are invested in the shares. But latter, the large cap dropped 22% sharply to 4778, and along with most of the euqity funds net value are shrinking.

Among the 26 funds which setting up new peak records, there are 21 funds gainning a weight position in shares, and the China AMC Large Cap Enhanced Fund won the first place, rose 10.07% against the peak at Oct. 16, 2007. The China AMC small and medium borad ETF rose 9.01% and the BOC International Sustainable Growth Equity Fund was up 7.13%, the Full Goal Tianrui Regional Wealth Fund gained 5.59% and the ABN Amro TEDA Optimized Growth Fund rose 5.22%.

And there are 5 active allocation funds which also set up new records, and the Hua’an Baoli Allocation Fund rose 4.43% against the peak record Oct.16 ,2007.

There funds are mainly invested in the high value and high growth small and medium Cap stocks from fund operation style. Such as the China AMC Big Cap Enhanced Fund, ABN Amro TEDA Optimized Growth Fund, Full Goal Tianyi Value Fund, Full Goal Tianrui Regional Wealth Fund.etc.. The China AMC SMALL AND MEDIUM BOARD EXCHANGE TRADE FUND ranking the second place, is such a fund that directly followed the Small&Medium Borad index.

Analysts said the large Cap index though have rebounded to 5361.57, still far beyond the peak 6124, that is because the first-tier blue chip,the financing and the real estate borad have not yet finished the adjustment resculting the growth so small. The market condition in the private shares is very active. A number of high growth Small & Medium borad stocks have hit a new high along with the Small & Medium borad index hitting a new peak leading to a havest in the equity funds. With the opening of the annual report, the high-expected prive shares will have a better performances, especially the private shares with expection of high distribution. Therefore, the fund invested in the Small & Medium borad stcoks will have a outstanding performance.

China Cinda Asset Management’s analysts, Liu Mingjun indicated that some investors only hold the Large Cap style funds, not only similar in the investment orientation but also in the weight holding share porportion. Such a porfolio will fully step in an elation in the bullish market, but will fully lose in the turbulence. The experts predicted that the big Cap blue chip shares are still the main market this year, and the Small & Medium borad will gain one or two rounds hot popularization. So the investments with a Big, Medium & Small borad porfolio may gain an excess yield in such a style changing market. Therefore, analysts suggested that although the Large Cap fund is still the main variety for investment, allocating some Small & Medium board fund or bright theme fund is needed basically.

Copyright Fund China 2009.

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