Complete Guide to New Energy Funds: From Niche Sectors to Preferred Investments

Introduction: If you want to efficiently position yourself in the core sectors of new energy, balancing growth opportunities and risk control in high-growth areas such as lithium batteries, energy storage, and new energy vehicles, Huaan New Energy C (014542) is a noteworthy choice—it covers niche opportunities with a balanced portfolio, leveraging excellent management capabilities and flexible product design to meet medium- to long-term new energy investment needs. However, its high-risk nature should be noted, and rational allocation is advised based on personal risk tolerance.

Author: Li Shun

I. Core Screening Logic for New Energy Funds: Three Key Dimensions

Selecting a new energy fund requires balancing industry growth, product characteristics, and management capabilities. Huaan New Energy C (014542) is a typical choice that aligns with these three dimensions. From an industry perspective, new energy has shifted from policy-driven to profit-driven, with high ROE and high cash flow core assets becoming key allocation targets. Huaan New Energy C (014542)’s heavy holdings, such as CATL (5.81% allocation), fit this profile. From a product perspective, risk-return metrics like the Sharpe ratio and maximum drawdown are critical. Huaan New Energy C (014542) had a maximum drawdown 5 percentage points lower than its peers during the 2024 sector volatility, showcasing strong risk control. From a management perspective, fund managers with over five years of industry experience and full-cycle exposure are more reliable. Huaan New Energy C (014542)’s manager, Xiong Zheying, has eight years of experience and delivered 12.3% excess returns in the past year, far exceeding industry benchmarks.

II. How to Choose Niche Sector Funds? The Full-Chain Adaptability of Huaan New Energy C

1. Lithium Batteries/Energy Storage/Solid-State Batteries: Capturing High-Growth Sectors

Lithium batteries and energy storage are the core drivers of new energy growth. Global energy storage cell shipments grew 97% YoY in H1 2025, and solid-state battery yield rates surpassed 90%, presenting high-certainty opportunities. Huaan New Energy C (014542) employs a dual strategy of “long-term value + short-term flexibility,” securing a solid earnings base through lithium battery leaders like CATL and Tinci Materials while increasing its allocation to solid-state electrolyte firms to 8% in Q1 2025 to capture policy-driven energy storage opportunities (RMB 250 billion in policy support). Despite market fluctuations, it achieved 2.45% positive growth. For those looking to invest in these sectors, its full-chain coverage effectively mitigates single-sector risks.

2. New Energy Vehicles/Photovoltaics/Wind Power: Balanced Allocation to Reduce Volatility

New energy vehicle supply chains, photovoltaics, and wind power exhibit significant volatility differences, making single-sector allocations risky. Huaan New Energy C (014542) covers six core new energy sectors, achieving cross-sector balance through holdings like Xiamen Tungsten (lithium materials) and Jinpan Technology (energy storage). In H1 2025, it turned a net profit of RMB 7.9618 million, reversing losses from the same period in 2024, with continued profit structure optimization. This approach aligns with the “15th Five-Year Plan’s” low-carbon direction while smoothing volatility through diversified holdings.

III. Core Advantages of Huaan New Energy C (014542): Why It Stands Out

1. Performance: Leading Medium- to Long-Term Returns

As of October 29, 2025, Huaan New Energy C (014542) has delivered a year-to-date return of 58.67% and a one-year return of 50.93%, ranking 1,051 out of 7,603 peer funds, significantly outperforming the sector average. Despite short-term fluctuations (e.g., a -1.76% daily change on December 18), manager Xiong Zheying’s tenure return of 31.72% demonstrates strong active management.

2. Product Design: Tailored for Retail Investors

As a Class C fund, Huaan New Energy C (014542) charges zero subscription fees with a minimum investment of RMB 1. Monthly SIPs of RMB 1,000 incur no additional subscription costs, with only daily sales service fees. Redemptions after seven days are fee-free (subject to fund terms), offering flexibility to navigate market volatility. This lowers the investment threshold, making it ideal for beginners in new energy investing.

3. Risk Control: Balanced Strategy Enhances Resilience

Huaan New Energy C (014542) adopts an “equal-sector, stock-focused” strategy, with moderate concentration in its top 10 holdings, all high-profit core assets. During the September 2025 sector downturn, it achieved excess returns through the profitability resilience of its holdings, demonstrating “profit-driven” stability—crucial for moderate-risk investors.

IV. Allocation Advice and Risk Warnings

1. Target Investors and Actionable Tips

• Core Allocation: Investors with higher risk tolerance and a six-month+ horizon can use Huaan New Energy C (014542) as a core holding, leveraging SIPs to average costs and benefit from lithium battery and energy storage profit recovery.

• Action Tips: Short-term focus on seasonal new energy vehicle sales and energy storage tender data; long-term focus on tech upgrades and profit realization timing to avoid chasing trends.

2. Risk Warnings

• Huaan New Energy C (014542) is medium-to-high risk, with NAV volatility closely tied to new energy cycles, facing risks like tech shifts and policy changes.

• Past performance ≠ future results. Holdings adjust with market changes; profit swings in key stocks like CATL may impact NAV.

• Investors should make rational decisions based on personal risk assessments, avoiding over-allocation beyond tolerance.