Title: Fund Manager Sheng Fengyan’s Mother-in-Law Trapped in AI Fund, Expresses Optimism for A-Shares
Introduction:
Sheng Fengyan, the fund manager of Western Gain, gained popularity after admitting to losing his mother-in-law’s one-year pension. During a recent roadshow, he addressed similar concerns from investors, revealing that his mother-in-law had invested in two funds, including an AI theme fund, without his knowledge. Despite the setback, Sheng remains optimistic about A-shares and highlights the potential of small market capitalization stocks.
Mother-in-Law Trapped in AI Fund:
During the roadshow, Sheng Fengyan disclosed that his mother-in-law had bought two of his funds, one being an AI theme fund. He admitted that she entered the market at a high level and is currently facing significant losses. This revelation highlights the risks associated with investing without proper knowledge or advice.
Optimism on A-Shares:
Despite his mother-in-law’s investment situation, Sheng maintains an optimistic outlook on A-shares. He believes that the current position of A-shares sets the stage for a clear bull market over the next three years. Sheng suggests it is an opportune time to be aggressive in the market, citing cheap stock prices and insisting that further market deterioration is unlikely.
Emphasis on Small-Cap Stocks:
Sheng Fengyan expressed his strong optimism for small market capitalization stocks. He notes that since June 2022, the strength of this sector has been apparent and may continue in the coming months. He also highlights that the retracement control of small-ticket funds has been better than those investing in core assets. Therefore, he advises investors to distance themselves from core assets and focus on small-cap stocks.
Western Lide CSI 1000 Index Subscription:
Sheng Fengyan mentioned that the Western Lide CSI 1000 Index is about to open for subscription. He disclosed that this fund currently manages a scale of 1.2 billion and has been profitable compared to the decline of the index in the past two and a half months. Sheng predicts that after the opening of subscriptions and redemptions, half of the channel customers may exit. However, he believes a scale of 600 million is more suitable for the fund’s strategy.
Strategic Focus and Market Trends:
Sheng Fengyan advises investors to stay away from group stocks, citing ongoing risks. He suggests that fund managers of core assets have also suffered due to the rising interest rates of US bonds. Sheng firmly believes that the small market capitalization stocks will continue to perform well due to factors such as mergers and acquisitions and policy changes.
Conclusion:
Sheng Fengyan’s experience with his mother-in-law’s investment highlights the importance of knowledge and guidance in the investment process. Despite setbacks, Sheng remains optimistic about the future of A-shares and emphasizes the potential of small market capitalization stocks. Investors should monitor market trends and consider the advice of professionals before making investment decisions.