Public funds have made a huge profit this time. January is about to end, and as of January 26th, the return rate of Penghua Carbon Neutrality Fund has reached 39.33%, all within less than a month. Additionally, the return rate of Yongying Advanced Manufacturing Fund has hit 36.88%, and three other funds have seen returns close to the 30% range.

Witnessing this phenomenon, people can’t help but exclaim once again, who says funds can’t make money? A fund with a monthly return of up to 40% has emerged. Even if you can’t buy such a fund, a monthly return of 30% is still quite impressive. Actually, what I want to say here is that funds with nearly 40% returns in a month generally share a characteristic: they are very small in scale and often lack liquidity. When the fund size is small and an excellent fund manager is in charge, heavy investments in a key sector can lead to a rapid increase in short-term returns.

For a fund, a scale of 50 million yuan is not comparable to 500 million yuan or even 5 billion yuan. As the scale expands, the difficulty of increasing returns also increases. The smaller the fund, the more flexible it is in operation. This explains how celebrity funds work: they start with a very small scale, use a concentrated holding strategy, and significantly boost returns in the short term, thereby quickly raising the fund’s profile. The ultimate goal of achieving this effect is to attract the attention of fund investors.

Are funds with a monthly return of 40% worth investing in?