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Middle East conflict situation is uncertain. Besides oil, what else can be invested in? Let's see how top mutual fund companies are positioning themselves.
Industry insiders pointed out that if the Middle East conflict persists for a long time, external market disturbances will further increase, and the volatility of growth sectors may also continue for a long time. More conservative funds may shift their focus to value sectors.
Recently, due to disturbances in the international situation, global capital markets have been experiencing increased volatility, with significant fluctuations in the prices of precious metals such as gold, and crude oil prices being influenced by news developments, experiencing sharp fluctuations. However, the Middle East conflict has been brewing for several days now, with no obvious signs of easing. Industry experts have been advising that in the current environment, when formulating investment strategies, it is necessary to be prepared for the prolonged nature of the Middle East conflict. With the backdrop of the prolonged Middle East conflict, the crude oil sector has relatively higher investment certainty, but the extreme volatility of such assets has made many investors hesitant to invest. In addition to crude oil, sectors with stronger stability, value propositions, and long-term certainty have also been attracting a lot of attention from investors. When analyzing the value sector for investment opportunities, industry experts have pointed out that if the Middle East conflict continues to prolong, external market disturbances will further increase, and the volatility in the growth sector might also persist in the long term. As a result, more stable funds may shift towards allocating to value sectors. Furthermore, the pace of domestic economic recovery has not slowed down due to external disturbances, providing a strong fundamental support for the value sector. This month, top mutual funds have planned to issue value-style products, attracting stable funds. In addition to the value sector, in the background of geopolitical conflicts disrupting the global supply chain, the focus on the self-controlled sector has significantly increased. Specifically, sectors like coal, power equipment, rare metals, and lithium batteries have received key attention from mutual fund institutions. With investment opportunities arising in the value sector, mutual fund institutions are swiftly making product layouts. Two top mutual funds have initiated the issuance of value-style funds this week, with the Fuguo Value Strategy opening for subscription on March 9th, and the Huatai Midas CSI All-Share Electric Power Utility ETF launching for subscription on March 11th, tracking the CSI All-Share Electric Power Utility Index. Furthermore, amidst escalating geopolitical conflicts and concerns about supply chain security, the self-controlled sector with medium to long-term value propositions is also under the spotlight of mutual fund institutions. Though this sector may not directly benefit from rising oil prices, it indirectly benefits from the global industrial security restructuring logic brought about by the Middle East conflict. In conclusion, investment experts emphasize the importance of being prepared for prolonged market disturbances and the potential shifts in investment focus towards value and self-controlled sectors amid the current geopolitical climate.
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