Surpassed 38 trillion! Public fund assets reach a new high, with this type of growth leading the scale increase

On March 25, the latest publicly offered fund market data released by the Asset Management Association of China (AMAC) showed that, as of the end of February, the total size of China’s publicly offered funds reached RMB 38.61 trillion, first surpassing RMB 38 trillion, and it has also set a new historical high for 11 consecutive months.

Since April 2025, the scale of publicly offered funds has kept hitting new highs. In April 2025, the scale of publicly offered funds first exceeded RMB 33 trillion; by late June it surpassed RMB 34 trillion; by late July it broke above RMB 35 trillion again; by the end of August it crossed RMB 36 trillion; and by the end of November it reached RMB 37 trillion.

Fixed-income funds are the main driver of scale growth

Based on the structural data disclosed by AMAC, in February 2026, fund sizes across all major product types recorded positive growth. Among them, money market funds and bond funds became the main engines of month-on-month growth in fund size. Mixed funds and FOF funds also saw growth to varying degrees, indicating that, amid market volatility and a low-interest-rate environment, investors’ preference for stable, prudent assets has continued to heat up.

Specifically, by the end of February, the scale of money market funds was RMB 15.85 trillion, surging by RMB 579.51 billion compared with the end of January, an increase of 3.80%. Bond funds grew by RMB 216.734 billion during the month, bringing their total scale to over RMB 10.75 trillion, with a month-on-month increase of 2.06%. Together, these two fund types contributed more than RMB 796 billion in additional scale, becoming the core force supporting the overall scale to surpass RMB 38 trillion.

Industry analysis points out that the sharp increase in money market fund size is closely related to the current low-interest-rate environment and the “deposit relocation” trend. Against the backdrop of continued declines in bank deposit interest rates, the appeal of traditional savings has been weakening, and residents’ wealth is undergoing a structural reshaping from “saving at banks” to “investing in funds.” Money market funds, with their dual advantages of liquidity and safety, have become the main force taking in transferred deposits.

It is worth noting that, recently, money market fund yields have continued to hover at the bottom. As of March 25, among more than 300 money market funds included in the statistics, the average annualized yield over the past 7 days is about 1.14%. Even crossing below “1” has become a common occurrence. The annualized yield over the past 7 days of Tianhong Yu’ebao, which ranks among the top by scale, is 1.001%, just a hair’s breadth away from breaking “1.”

To retain investors during the period of falling yields, multiple fund companies have proactively cut their management fee rates. Recently, money market funds—including Shenwan Lingtong Tian Tianli, Citic Jianou Zhi DuoXin, Zhongtai Jingquan Huijin, and GF Cash Increasing Profit—have lowered their prior management fee rates, with the maximum cut ranging from 0.90% down to 0.25%.

This “benefit to the people” move not only reflects intensifying competition within the industry, but also highlights the original intent of publicly offered funds to return to their roots and to serve the real economy and investors.

FOF funds show substantial incremental growth

While fixed-income funds are growing steadily, funds-of-funds (FOF) has become another major highlight. In February, FOF scale grew by more than RMB 34.5 billion month-on-month, and newly issued FOF products in the year have also frequently seen the “sell-out in a single day” phenomenon.

As of March 25, FOFs issued this year total RMB 65 billion. Among them, two FOF products—Bosera YingTai Zhenxuan with a 6-month holding period, and China Europe Yingxin Stable with a 6-month holding period—had establishment sizes of more than RMB 5 billion each, while products such as Industrial and Commercial Bank of China (ICBC) YingTai Stable with a 6-month holding period and Fullgoal Zhihui Stable with a 3-month holding period had establishment sizes of more than RMB 4 billion each.

The hot issuance of FOF products reflects a surge in investors’ demand for professional asset allocation. In a complex environment where market volatility is increasing and sector rotation is accelerating, ordinary investors find it difficult to capture structural opportunities. With their cross-asset and cross-strategy allocation advantages, FOFs effectively smooth out portfolio volatility and provide a “one-stop” wealth management solution.

On the other hand, strong support from bank channels is a key factor behind FOF expansion. At present, major banks are accelerating their transformation from simply distributing single products to moving toward systematic and branding-oriented wealth management. They work with fund companies to launch dedicated FOF plans, using customized strategies to meet customers’ reinvestment needs after bank deposits mature.

Data from Lide Fund show that the current supply of FOF products features a clear pattern of “low risk as the dominant theme,” which strongly aligns with investors’ preference—under a low-interest-rate environment—for stable returns and tight control of drawdowns. This not only confirms investors’ high sensitivity to drawdown control in the low-volatility era, but also reflects the core positioning of FOF products as tools for replacing deposits and taking in wealth management allocations.

Active equity funds show clear divergence

For active equity funds, stock funds and mixed funds show different trends. Data shows that, as of the end of February, the latest scale of stock funds was RMB 5.63 trillion, shrinking by RMB 79.035 billion compared with the end of January; meanwhile, the scale of mixed funds reached RMB 4.1 trillion, increasing by RMB 93.341 billion month-on-month.

Looking at share changes, a positive signal is emerging: the drag effect of “redeeming upon breaking even” among individual retail investors is gradually weakening, and the growth in subscription and purchase funds is increasingly offsetting the impact of redemptions of existing holdings. Since January this year, the share size of mixed funds has recorded month-on-month growth for two consecutive months. In February, after growing by 1.88% in January, it rose again by 1.4%, reaching the latest 2.64 trillion shares. Scale increased by 2.33% month-on-month, and the latest scale surpassed RMB 4.1 trillion.

Some market analyses indicate that the main reason for the decline in stock fund scale is the shrinking shares of ETF funds. According to statistics, during February the ETF market continued the downward trend seen in January. The monthly scale decreased slightly by RMB 74.1 billion. Among them, the net outflow scale of the CSI 300 ETF and the CSI A500 ETF both exceeded RMB 20 billion, which is a core drag causing the contraction of ETF scale—and even stock fund scale.

Some market analyses also point out that, before the Spring Festival, as risk-avoidance sentiment among funds rose and investors’ willingness to lock in gains increased, trading activity cooled down temporarily, investors’ risk appetite declined somewhat, and stable-type products became the main direction for inflows.

Citic Securities noted that recently, with the combined disturbance from global geopolitical risks and the rebound in domestic inflation, trading heat for broad-market index products has cooled while crowding in structural trades has increased. As a result, market funds may engage in short-term games among the “price-adjustment chain,” low valuation, and defensive assets.

Overall, publicly offered fund scale has set new historical records for 11 consecutive months. The leap from RMB 32 trillion to RMB 38 trillion took less than a year and a half. This milestone not only bears witness to the industry’s own development, but also mirrors a profound change in residents’ wealth allocation structure.

As the foundational institutional framework of the capital market continues to improve and residents’ awareness of wealth management continues to rise, publicly offered funds—as the core carrier of inclusive finance—will further highlight their functions in serving residents’ wealth management and supporting the real economy.