Analyzing "Smart Money" Fund Investments: Institutions Carefully Select for Reference, Do Not Buy Blindly

People’s Finance News, April 8—Recently, publicly offered fund 2025 annual reports have been completed and disclosed. After reviewing, reporters found that several top-performing actively managed equity funds have relatively high institutional holding ratios. Compared with the beginning and mid-point of 2025, by the end of 2025, some funds’ institutional holding ratios have increased noticeably. Industry insiders believe that, on the one hand, institutions, leveraging professional research capabilities and stringent due-diligence processes, often make their allocations with real capital after conducting in-depth research; among these products are funds that have not yet been widely recognized by the market but have relatively steady medium- to long-term performance. On the other hand, an excessively high institutional share can also act like a double-edged sword: if market volatility occurs or if institutions’ capital plans change, concentrated and large-scale redemptions could pose a shock to fund liquidity, and even affect the fund manager’s normal operations and investment cadence, creating what is known as “redemption risk.” Therefore, while investors pay attention to the direction of institutional “smart money,” they should also rationally examine the balance of the fund’s holder structure and be wary of products in which the institutional share is overly concentrated. (China Securities Journal)