2025 investment review, profit of 103,000, yield rate 30.6%

New Year, time to review the investments for 2025.

Last year can be said to be a bull market for equity assets. Besides the rise in A-shares, the Nasdaq index in the U.S. rose by 20.3%, and gold surged by 64.7%.

For A-shares, the CSI 300 Total Return Index rose by 21%, the Partial Equity Mixed Fund Index rose by 33%, the ChiNext Index rose by 49%, and the CSI 2000 rose by 36%. The sectors that rose the most last year were mainly concentrated in the technology sector and small-cap stocks.

Looking back now, it was easy to make money last year. The market rose from the beginning of the year to the end. As long as you bought a broad-based index and held onto it without moving, you could earn decent returns. If you allocated some to tech stocks and micro-cap stocks, the returns would be even higher.

We can review our own accounts to see if we achieved a 20% return last year. If it was below 20%, it would have been better to buy a broad-based index. Even the CSI 300 rose by 21%. If you struggled all day and still couldn’t outperform the market, why not just buy the market index and win by doing nothing?

For me, I practiced what I preached. From the beginning to the end of last year, my holdings barely moved, mainly consisting of the Partial Equity Mixed Fund Index and the Micro-Cap Stock Index, with my position maintained at 90%.

Below is my fund’s return curve for 2025. Last year, I made a profit of 103,000 yuan, with a return rate of 30.6%. During the same period, the CSI 300 rose by 17.6%, outperforming the market by 13%.

The Partial Equity Mixed Fund Index kept up with the overall market gains. The Micro-Cap Stock Index surged by 81% last year, far outperforming the market and contributing to the main excess returns.

However, I didn’t allocate positions to the tech sector or gold’s surge last year, and I don’t regret it. Because I think this is beyond my understanding—if I don’t understand it, I don’t invest. I only do what I understand, and I still made 30% last year. Isn’t that pretty good?

After the market rally started on September 24, 2024, I judged that the A-share bull market was still ongoing. Then I chose the right targets, held onto partial equity mixed + micro-cap stocks, and held them until the end of the year, lying down and making money while waiting for the rise. It’s really that simple, nothing complicated.

So, in summary, making money in an A-share bull market is very simple: choose the right targets and hold onto them. But most people can’t do this.

Why didn’t some people make money, or even lost money? I’ve summarized the following reasons.

1. Can’t hold. From my observations, most beginners can’t hold onto funds. Either they’re afraid of highs and sell too early, missing out on the second half of the bull market. Or they chase rallies and sell in panic during the April crash. Or they trade frequently, selling at small gains and small losses.

2. Not firm enough in the bull market. This year’s A-share rally mainly started after July. Many people started reducing or even clearing their positions when the rally just began, missing out on the subsequent gains.

About this point, it’s mainly due to a lack of understanding of the A-share market’s bull-bear cycles and insufficient perception of the market, leading to early exits when the rally just started.

3. The higher the rise, the heavier the position. Many people were indeed in the market, but their direction of adding positions was wrong. In the first half of the year, when there wasn’t much movement, they stayed lightly positioned. In the second half, when the market started rising, their positions grew heavier. Then they encountered a pullback, and all their previous profits were wiped out.

Everyone can review last year’s operations to see if any of these situations applied.

For most people, buying and holding broad-based indices like the CSI 300 or the Partial Equity Mixed Fund Index, waiting for the rise in a bull market, is the easiest way for ordinary people to make money. Last year’s A-share market once again proved this point.